ECPI SUSTAINABILITY METHODOLOGIES
ECPI’s proprietary research model focuses primarily on the ESG (Environmental, Social, and Governance) performance factors that determine issuers’ sustainability-related intangible market value and hidden reputational, legal or regulatory risk.
The analysis is applied at company and country level.
At company level, ECPI research covers a wide universe of international companies in a proprietary database tracking ESG performance data since 2005. Company analysis is timely updated to reflect any change in a company ESG profile and anticipate potential risks. At country level ECPI’s ESG model covers all the countries worldwide and it is updated every year.
The research universe also includes a number of alternative investment strategies, including hedge funds and microfinance institutions.
ECPI’s company research process is both rigorous and disciplined and its proprietary methodology is based only on publicly available information in annual financial reports, stand-alone sustainability reports and company websites; moreover the analysis adopts information from qualified data and media providers.
ECPI uses an objective, sector-based approach to analyzing ESG data of issuers with the goal of translating qualitative data into quantitative indicators, assigning to each issuer a score and a rating.
ESG ratings and scores represent risk/value signals not factored-in by the traditional financial analysis.
The added value of ECPI ESG analysis is proven by a number of studies performed by qualified third-party financial institutions (see example).