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Company rating tools and tradable indices

Company rating tools and the development of tradable indices

Over the last five years Maplecroft has progressively refined its rating and weighting methodology for the evaluation and assessment of company sustainability performance. This includes rating of performance on issues including human rights, labour standards, climate change and environment, as well as corruption and related risks.

Our rating tools evaluate business performance in each area with respect to management, adaptation, data and trends, risk mitigation and innovation. Companies are scored on the information they disclose, as well as activities that they undertake and analysis by respected third parties. Information is obtained through initial desk research and followed up with direct engagements to fill gaps and better understand each company's risk exposures i.e. geographic footprint, sector, product area etc.

Rating tools include surveys, scorecards and transparently disclosed methodologies that can be applied to individual businesses or investment funds. Financial institutions can license the tools, methodology and results to construct their own products, to benchmark existing funds or to develop tradable indices.

Case study

Rating carbon innovation and performance

Companies that adapt and innovate successfully are better equipped to capitalise on changing policy environments, investor requirements and to mitigate the physical impacts of climate change on their operations. Maplecroft has recently released the Carbon Innovation Indexes which rate the top 350 US companies on their climate innovation and carbon management programmes. The production of the indices included the pre-screening of more than 1,300 US stocks. The CIIs help asset managers identify the companies that are best-positioned to take advantage of opportunities in new growth environments due to their disruptive innovations and partnerships. The rating tool has been informed by best practice standards such as the Greenhouse Gas Protocol, ISO 14064 and the Global Reporting Initiative, but also by in-field sustainability and carbon auditing experience.