How our scoring methodology works

Research to ratings to real scores: discover how we turn collective intelligence into real-time impact scores for thousands of listed companies.
See Methodology

About The Score

Objective

Scores are built on fact-based data and analyses collected by thousands of individuals. Focusing on impact, not intentions, our community delivers reliable, unbiased information to guide investors and consumers on who to spend with, invest in or advocate for.

Exhaustive

Comprehensive research is gathered on thousands of companies and topics, analysing how their core business, products, processes, and even their ideas impact our world. See how companies positively and negatively contribute to the UN Sustainable Development Goals.

Timely

Our impact scores are live, they are based on ratings being made by our community right now, on current data, reactive to the latest reports and research, get a live score for a company today.

Our Impact Score Methodology

Company Impact Score Methodolgoy




1. Analyses & Ratings

Our community researches and writes impact analyses about companies all over the world. Each analysis that is published on the platform is rated by the community according to 2 dimensions: value (how positive/negative the impact is) and materiality (how small/large the impact is).


2. Knowledge Ratio

All raters are not equal: the more a community member has read and rated previously on the same company and/or Sustainable Development Goal, the higher their "Knowledge Ratio" is. That means that we do not have one specific "Knowledge Ratio" per rater. Instead, the ratio is calculated on the spot at the time a rater submits a new rating. A very informed rater can have a weight that is several times higher than a rater rating for the first time. For example, a person’s first-ever rating on “Nestlé and Climate Action” will have significantly less weight than a very informed rater.

3. Decay Factor

Our algorithm also integrates a decay factor that is applied to all ratings received on the platform. Each day that passes, the weight of "old" ratings are slowly decreased so that more recent ratings are always favoured against older ones. This decay factor follows a simple one-year-half-life logarithmic scale, which means that a rating published one year ago is worth half of one published today and a rating published 2 years ago is worth a fourth of a rating published today.

4. Value & Materiality

Once we have applied these calculations, we end-up with a Value score and a Materiality score for each analysis. As a precautionary measure, we do not publish Value scores and Materiality scores for companies with less than 15 ratings, ensuring only robust data is available.

5. Weighted Average

We then calculate a weighted average of all Value scores by all Materiality scores for all analyses attached to a given company. We do the same to calculate the Sustainable Development Goal scores, i.e. we will use a weighted average of all Analyses for that company related to that SDG.

This gives us our final result - live impact scores for hundreds of companies.

This is a high-level summary of our approach to impact scoring. If you would like more information about our methodology please get in touch with our client team (clients@impaakt.com), we can share a full technical document that delivers more depth on our company rating and scoring methodology.


Browse Company Impact Scores

See the impact score live in action by exploring a company page. Investors and financial professionals use our impact data to look beyond ESG and make more informed investment decisions about the companies they invest in.

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