Global Sustainability Index
Introduction:
Global 2000 companies are under pressure to report the environmental and social
impact of their business operations based on standards that are emerging from
the United Nations Environmental Programme Finance Initiative, United Nations
Global Impact, Global Reporting Initiative, U.S. Climate Action Partnership
(USCAP) and Carbon Disclosure Project. Institutional and individual investors
are demanding full transparency so they can accurately access and interpret
companies' environmental and social profiles in order to make informed investment
decisions. The Global Sustainability Index was developed specifically to capitalize
on these emerging trends.
Methodology:
The Global Sustainability Index was created by screening G2000 companies whose
disclosure and sustainability practices correlate to investor transparency
and long-term financial performance. The Global Sustainability Index also incorporates
CRD Analytics' "triple
bottom line",
a set of key financial, environmental and social performance indicators.
CRD Analytics is the first to offer a global sustainability index based on
GRI G3 guidelines combined with best in class quantitative performance metrics.
Our "triple bottom line" index construction approach enables us to build equity portfolios based on the following elements:
Key Financial Performance Indicators (KPIs) - Such as fundamentals, valuation, growth rates, profit margins, etc.
Environmental Performance Indicators* (EPIs) - Such as green house gas emissions, energy usage, water usage, waste production, etc.
Social Performance Indicators* (SPIs) - Such as supplier screening, workforce diversity, employee training, and safety measures, etc.
*Based on G3 Sustainability Reporting Guidelines as defined by the Global Reporting Initiative (GRI)
Performance Relative to Peer Indexes:
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