esg2go Transparency: Our Foundation
The big difference
In contrast to many other ratings and reports, we take pride in full transparency. In a landscape where greenwashing and vague claims can cloud the genuine commitment to sustainability, esg2go emerges as a beacon of authenticity. This tool’s unparalleled transparency not only facilitates the thorough documentation of environmental, social, and governance (ESG) practices but also ensures the accuracy and reliability of the reported data. This is how we establish credibility and enable you to showcase your sustainable efforts with integrity and foster meaningful connections with investors, consumers and the broader global community.
We are proud to disclose the details of our methodology in the name of transparency:
What information do we need?
esg2go is designed to be lean, but not too minimalistic. Reliable results require reliable data entry, most of which will be ascertained from financial statements. In some cases, you may need electricity bills or employees’ wage statements.
It is not unlike doing your taxes: The first time requires more time, due to gathering all the necessary documents. The following times, you will have everything prepared and ready to go. As always, experienced individuals, for which sustainability has already been a factor, will have an easier time than people who are just getting started with a sustainable business model.
On request, a Professional (specialist) will guide you through the entire process. The professionals can help with data entry, as well as a detailed explanation of the results.
What are we calculating?
The data-entries (please klick here for an exemple) are converted into scores (analogous to grades with 0 = minimum, 100 = maximum and 60 = benchmark) by the calculation machinery developed by CCRS. This works as follows: So-called KPIs (key performance indicators) are calculated from the individual input values. These are converted into initial scores according to industry and size class. The scores are accumulated at key area level, two each for the environment, five for social and three for governance. These Footprint scores are converted into Key Area Handprint scores, taking into account the active contribution. These key area scores are in turn converted into scores for the individual ESG areas and into an overall score. In addition to the input from the esg2go participants, other empirical values are also included in the calculations of the scores.
In module 1, the data entered will convert into KPIs
In module 2, every KPI value will convert into a value between 0 and 100, which will be represented as a KPI score. These KPI scores are designed in a comparable way due to an adequate benchmarking process.
In module 3 there will be a weighted aggregate of KPI scores in key categories, which will be completely transparent. Additionally, the scores will be shown as an aggregate in the key layer of footprint-score in the main categories E, S, and G.
In module 4, the optional entries of the questionnaire which determine the SME’s “Handprint” will be adjusted to key layers and produce a new score. Handprint adjusted score in key layers.
In module 5 the handprint adjusted score on key layers will be aggregated to the main areas to receive scores on E, S, and G.
In the final step, the scores in Module 6 at the E, S, and G levels are aggregated into an overall score that represents the final total score of the SME.
In its entirety, the SME participants will receive a final score in categories E, S, and G, as well as scores in key layers in every category. Each of these scores consist of a score before adjustment by optional input (footprint score) and a score after adjustment by optional input (handprint score).
For benchmarking purposes, the scores are calibrated for the respective company’s industry and size. A score of 0 is a so-called no-go value, i.e. the absolute minimum. A score of 100 is the ideal value that is currently theoretically possible. The benchmark lies at 60, which means it serves as a reference value for the respective industry and size of company. If you are over the benchmark, you are performing better than the industry average, if you are below it, you are performing worse. esg2go differentiates very strongly. An overall score above 70 is already really good and a score above 80 is extremely good.
The following figure sums it up perfectly: Through differentiated benchmarking, adjusted to industry and company size, the scatter will reduce, and the benchmark becomes more accurate and therewith more meaningful.
So, what is it all for? Well, quite a lot, if you ask us.
- A clear, fair, industry, and company size adjusted scoring system in all ESG categories.
- An automated reporting system that can transfer to further reporting.
- The open approach engages stakeholders in sustainability issues, which ensures the high quality of the esg2go Rating & Reporting System.
- The esg2go Rating & Reporting is completed once and accepted multiple times by many customers. This saves a lot of time.
- This is how esg2go becomes a reliable reference, which will enable access in further markets and business propositions.
You can see an example of a report (rating only) here. In addition, participants will receive a “stamp” to use for communication.
esg2go-go-go! A efirst, sustainable start in sustainability reporting.
|Issue||How the esg2go framework solves it|
|1||A coherent definition of sustainability and its implementation||Within the esg2go framework, we understand sustainability as the ability to coexist and assess SMEs accordingly, which can also be interpreted as the company’s ability to strive for win-win solutions (profit for society, including the future generation, and profit for the company in the medium and long term).|
|esg2go is based on hard facts that are easy to verify and should come mainly from accounting and HR sources. Some more detailed requirements could mean additional work for early adopters. According to our observations, the required inputs for the majority of SMEs are feasible within one day for first-time users. Based on our initial experience, we expect a significant reduction in workload.|
|3||Fair evaluation, comparability and avoidance of distortions||
These three concepts are closely related.
A fair evaluation requires that one compares within relatively uniform categories of enterprises, which automatically excludes bias by size or industries, for example. esg2go ensures this with its sustainability categories.
|4||Robustness and stability||Among other calibration methods, esg2go avoids biased evaluation that could arise from model risk by considering error tolerance intervals.|
|5||Sustainability and risk management||
Sustainability management adds complementary elements to standard risk management, such as stakeholder expansion and long-term risk drivers. With its scoring, esg2go sets the right incentives in this sense. To promote active sustainability management, the esg2go platform also offers additional management support tools/features such as:
– CO2 Calculator: In its output, it shows the company’s Scope1, Scope2 and Scope3 emissions (Scope3 emissions that SMEs can influence without jeopardizing their competitiveness) and other management items.
· Key Driver Analysis: In its findings, it highlights the company’s potential for improvement.
· Development analysis: For the companies already rated with esg2go, the development analysis shows the development of the most important esg2go positions over the years.
|6||Learning instrument||The esg2go framework is a dynamic learning tool that monitors scientific developments and takes into account all feedback from SMEs and experts in its interactive feedback process, provided it is consistent and essential.|
|7||Standard reporting||esg2go supports SMEs in filling standard reports such as GRI by providing automated input data for reporting.|
|8||Greenwashing and model arbitrage||By carefully contextualizing hard facts, esg2go avoids greenwashing and model arbitrage|