General information on the ESG data

ESG data is often considered "non-financial" information as it captures valuation components that are not traditionally reported on balance sheets. The valuation of companies has become more complex as an increasing proportion of the company's value is tied up in intangible assets. Specifically, ESG refers to the consideration of environmental, social and governance criteria to measure the sustainability and social impact of an investment in a company or firm to measure the sustainability and social impact of an investment in a company or firm. These criteria help to better determine the future financial performance of companies.

To meet the growing demand for high-quality ESG data, Infront will offer detailed ESG risk scores for approximately 30,000 companies and 200,000 funds (as of May 2021) through our products.

The ESG risk scores are provided by Clarity AI, a leading provider of sustainability data.

The ESG risk scores provide you with a points-based evaluation system that helps you to understand a company's ESG performance and compare it with other companies. This rating system uses a scale from 0 to 100, where 0 stands for "poor" and 100 for "excellent".

Below you will find definitions and methodology of the ESG scores.

Infronts ESG Risk Scores - Powered by Clarity AI
ESG risk scores for companies (equities, funds and bonds)
Total ESG risk score	Aggregated total score based on environmental, social and governance score.
Environment	Aggregated environmental score based on subordinate scores.
Resource consumption	Score for a company's water and energy consumption as well as its impact on land and biodiversity.
Emissions	Score for a company's carbon emissions, waste and pollution.
Environmental footprint of suppliers	Score for resource consumption and emissions from the company's supply chain.
Environmental balance of the products	Score for the impact of the product on the environment and sustainability in product development.
Environmental management and processes	Score in relation to a company's sustainability policy, strategy and processes.
Social affairs	Aggregated score for Social based on subordinate scores.
Employees	Score for labor law, diversity, employee health and safety and employee satisfaction.
Customers and products	Score for customer feedback, media attention and customer/safety incidents.
Supply chain	Score for health and safety and the ethical principles of suppliers.
Community and society	Score for social commitment, donations and various guidelines relating to human/labor rights.
Governance	Aggregated governance score based on subordinate scores.
Corporate management	Score for the composition, function and coordination within the Management Board, the committees and their accounting processes.
Corporate ethics and behavior	Score for risk management, code of conduct and public affairs.
CSR and sustainability	Score for corporate social responsibility policy and strategy.
Partnerships, memberships, awards and certifications	Score for certifications (ISO) and memberships (signatories to the UN Global Compact) in relation to sustainability and quality.

ESG risk scores for governments (bonds and funds)
Total ESG risk score	Aggregated total score based on environmental, social and governance score.
Environment	Aggregated environmental score based on subordinate scores.
Resource consumption	Score for the use of natural resources such as water, land, energy management, oceans and other resources.
Emissions	Score for GHG emissions and air pollutant emissions.
External environmental impacts	Score for biodiversity and natural disasters.
Social affairs	Aggregated score for Social based on subordinate scores.
Human capital	Score for a wide range of metrics: demographic transition, education, health, gender inequality, wealth inequality, employment inequality, working conditions and economic environment.
Real capital	Score for infrastructure.
Technology	Score for the adaptation of information and communication technologies as well as for technological progress and innovation.
Governance	Aggregated governance score based on subordinate scores.
Formal institutions	Score for economic, financial, legal and political rules, government effectiveness and level of corruption.
Informal institutions	Score for social capital within a government.
Stability	Score for stability within a government and net migration.