Photograph by Fauzan Saari
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Calvert analyzed the 1,000 largest U.S. public companies by market value. Each was rated on its performance in five key categories, each representing a kind of corporate stakeholder: shareholders, employees, customers, community, and planet.
To calculate the ratings, Calvert considered more than 230 key performance indicators from six primary vendors—CDP, ISS, MSCI, Sustainalytics, Thomson Reuters Asset4, and TruValue—supplemented by other data sources wherever relevant.
This data was organized into 28 distinct topics, such as greenhouse gas emissions, workplace safety, and workplace diversity. These 28 distinct topics sorted into the 5 key stakeholder categories (see attached detail). Each company received a rating of zero to 100 in each of the five categories, based on Calvert’s proprietary analysis and scoring methodology, which included taking an average of indicator-level scores over two years, if two years of data were available.
Next, an overall rating for each company was calculated using a weighted average of the five key stakeholder categories. The weightings were based on Calvert’s assessment of the financial materiality of each stakeholder category within the company’s industry peer group. Calvert determined a unique weight for each category in each of more than 200 distinct industry peer groups.
In addition, to be considered among the 100 Most Sustainable Companies, a firm needed to be rated higher than the bottom quartile for all financially material stakeholder categories. In other words, a company’s poor performance with any key stakeholder group determined to be financially material disqualified that company from consideration.
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