Understanding IPMC Score.
The IPMC ESG Score measures a company’s performance on and management of material ESG risks, opportunities, and impacts informed by a combination of company disclosures, media and stakeholder analysis, modeling approaches, and in-depth company engagement via the IPMC Corporate Sustainability Assessment (CSA). The IPMC ESG Score is a relative score measuring a company’s performance on and management of ESG risks, opportunities, and impacts compared to their peers within the same industry classification.
The IPMC ESG Score uses a double materiality approach whereby a sustainability issue is material if it presents a significant impact on society or the environment and a significant impact on a company’s value drivers, competitive position, and long-term shareholder value creation. The company’s ESG Score is based on its responses to the Corporate Sustainability Assessment, information available in the public domain and modeling approaches.
Corporate Sustainability Assessment
All companies are assessed using the industry specific questionnaire and methodology reflecting a company’s score compared to its industry peers. It focuses on four years performance on ESG issues. Companies assessed using the Corporate Sustainability Assessment fall into 2 categories:
IPMC Rating.
In contrast to ESG datasets that solely rely on publicly accessible information, IPMC ESG Scores are meticulously shaped by extensive engagement with companies through the IPMC Corporate Sustainability Assessment. Each company’s ESG data points are not only cross-checked against reliable public sources but also subjected to thorough analysis. This methodology grants access to comprehensive ESG insights before they become available to others. During each assessment cycle, companies collectively invest significant time, contributing to the process, while IPMC analysts meticulously validate disclosures for accuracy and relevance. These analysts engage in discussions on methodologies and measurement best practices, offering continuous feedback.
Ranking Methodology.