Innovative measurement of a company's dynamic sustainability developments
In addition to financial indicators such as dividend yield or price-earnings-ratio, investors are increasingly focusing on indicators related to the environmental behavior of a company. These indicators are known as ESG (Environmental, Social, Governance) factors and allow you to match your investment decisions with your personal values.
We are taking an innovative approach!
Until now, ESG ratings have consisted of a remarkably diverse pool of factors – from paper recycling to union ratios – and without any real transparency as to how the actual calculation is arrived at. This was only of limited help to investors.
After intensive research of existing rating concepts and analysis of scientific studies on ESG ratings and opinion polls, GGX has developed a globally unique pure-play approach to ESG ratings.
GGX ESG Rating – how does it work?
Our independent Rating considers 17 factors (see table) and measures from reporting period to reporting period of the respective company. So their dynamic development: improvement, synchronization or deterioration.
Our ESG Rating thus reflects whether and how well the company achieves the 17 firmly defined ESG factors – or not. The rating is adjusted as soon as new data is available from the company.
ESG data – what do we do better?
GGX has deliberately chosen a Pure Play approach to the selection of ESG factors. In contrast to conventional ESG ratings, which include many factors in the final rating (up to 400 individual indicators), use different sources (mostly through AI robotics) and include their own future forecasts on the achievement of the ESG goals of the respective company in their ESG rating, often in a non-transparent manner, we focus on real, quality-checked facts – which can be clearly interpreted by investors.
First, GGX acquires raw company data from direct sources with its own staff. We focus on 17 qualitatively selected factors that, after extensive preliminary analysis, optimally reflect ESG performance. Based on this ESG raw data, a rating grade from 0 to 10 is evaluated and presented. Our data cycle is 100% self-acquired, developed, and quality checked.
The advantage of the GGX ESG rating is that with only 17 factors, all changes with regard to individual indicators are clearly recognizable and thus the ESG dynamics of the company can be measured clearly and promptly for the investor – and can be assessed much better.
The more factors are included in the ESG rating, the less clear the result of the changes would be.
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