Methodology

The methodology built by Covalence for calculating ESG ratings integrates thousands of news pieces gathered online and classified according to 50 Environment, Social, Governance (ESG) criteria inspired by the Global Reporting Initiative, and to their positive or negative sentiment, regarding 3400 companies worldwide.

Covalence has developed a unique combination of automated content processing of texts in original language with qualitative assessment by an international team of analysts. The combined use of artificial intelligence and human analysis allow us to interpret large amounts of data within a short time.

While relying on universally shared values, this methodology faces the characteristics of modern society such as cultural diversity, democratic debate and scientific uncertainty, and the challenges of defining objective ethical criteria and credible information sources.

Our conviction is that a robust ESG performance translates trust and consensus of the different stakeholders in a company, and its ability to adequately factorize social and environmental concerns. It is an indicator of the quality of risk management, brand positioning, innovation capacities, and strategic vision. It is also a vector of the return on investment of Corporate Social Responsibility programs.

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