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ResponseAble - You

Our ESG Scoring Methodology

At ResponseAble, we've developed an environmentally-focused ESG scoring system that helps investors identify truly sustainable companies while maintaining balanced social and governance checks.

Our Environmental-First Approach

E S G Standard (33/33/33) Ours (60/20/20)

Why We Overweight Environmental Factors

  • ✓ The urgency of climate action and planetary boundaries
  • ✓ The direct link between corporate environmental performance and ecological outcomes
  • ✓ The material financial risks from environmental degradation

We maintain social and governance checks at 20-30% to avoid "greenwashing" and ensure holistic sustainability.

Industry-Specific Weightings

Energy

Environmental 60%
Social 20%
Governance 20%

Technology

Environmental 50%
Social 30%
Governance 20%

Financials

Environmental 50%
Social 20%
Governance 30%

Consumer Goods

Environmental 55%
Social 25%
Governance 20%

Healthcare

Environmental 45%
Social 35%
Governance 20%

Renewable Energy

Environmental 70%
Social 15%
Governance 15%

Transportation

Environmental 40%
Social 30%
Governance 30%

Real Estate

Environmental 50%
Social 25%
Governance 25%

Education

Environmental 45%
Social 40%
Governance 15%

Entertainment

Environmental 30%
Social 50%
Governance 20%

How We Calculate Each Pillar

Environmental (50-60%)

Measures a company's impact on natural systems:

  • GHG Emissions Intensity

    Narrative Factors:

    • Decarbonization trajectory vs. 1.5°C pathways
    • Supply chain influence (% suppliers with targets)
    • Transition risk exposure (% revenue from high-carbon assets)
  • Renewable Energy %

    Narrative Factors:

    • PPA commitments (long-term contracts)
    • Geographic equity (emerging market investments)
    • Innovation (green hydrogen/storage solutions)

Social (20-30%)

Evaluates impacts on people and communities:

  • Gender Pay Gap

    Narrative Factors:

    • Leadership parity (C-suite vs entry-level)
    • Intersectional pay equity
    • Policy transparency
  • Employee Turnover

    Narrative Factors:

    • Exit interview insights
    • Critical position retention
    • Employee Net Promoter Score

Governance (20-25%)

Assesses management quality and ethics:

  • Board Diversity

    Narrative Factors:

    • Tenure balance (new vs long-serving directors)
    • Climate competency (board skill matrices)
    • Succession planning (leadership pipelines)
  • Executive Pay Ratio

    Narrative Factors:

    • ESG-linked bonuses (% tied to sustainability)
    • Stakeholder alignment (vs industry peers)
    • Living wage commitment (lowest pay vs local cost)
Pillar KPI ESRS Ref Type Formula Scoring / Narrative Factors
Environmental GHG Emissions Intensity E1-6 Quantitative (Scope 1 + Scope 2 + Scope 3) / Revenue
  • 5 = >90% reduction vs baseline
  • 4 = 75-89% reduction
  • 3 = 50-74% reduction
  • 2 = 30-49% reduction
  • 1 = 10-29% reduction
  • 0 = <10% reduction or no disclosure
Environmental Renewable Energy % E1-5 Quantitative Renewable Energy Consumption / Total Energy Consumption
  • 5 = >90% renewable
  • 4 = 75-89%
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = 10-29%
  • 0 = <10% renewable or no disclosure
Environmental Toxic Emissions Intensity E2-1 Quantitative Toxic Emissions / Revenue
  • 5 = >90% reduction
  • 4 = 75-89% reduction
  • 3 = 50-74% reduction
  • 2 = 30-49% reduction
  • 1 = 10-29% reduction
  • 0 = <10% reduction or no disclosure
Environmental Plastic Waste Recycled % E5-5 Quantitative Recycled Plastic / Total Plastic Generated
  • 5 = >90% recycled
  • 4 = 75-89%
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = 10-29%
  • 0 = <10% recycled or no disclosure
Environmental Water Use Efficiency E3-5 Quantitative Freshwater Withdrawn / Revenue
  • 5 = >90% efficiency improvement
  • 4 = 75-89% efficiency
  • 3 = 50-74% efficiency
  • 2 = 30-49% efficiency
  • 1 = 10-29% efficiency
  • 0 = <10% improvement or no disclosure
Environmental Water Recycled % E3-6 Quantitative Water Reused / Total Water Withdrawn
  • 5 = >90% water recycled
  • 4 = 75-89%
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = 10-29%
  • 0 = <10% recycled or no disclosure
Environmental Circular Materials Usage E5-3 Quantitative Reused or Recycled Materials / Total Materials
  • 5 = >75% circular
  • 4 = 60-74%
  • 3 = 40-59%
  • 2 = 20-39%
  • 1 = 5-19%
  • 0 = <5% or no disclosure
Environmental Green CapEx % E1-3 Quantitative Green CapEx / Total CapEx
  • 5 = >60% CapEx green
  • 4 = 45-59%
  • 3 = 30-44%
  • 2 = 15-29%
  • 1 = 5-14%
  • 0 = <5% or no disclosure
Environmental Climate Scenario Analysis Coverage E1-5 Quantitative Assets Covered by Scenario Analysis / Total Assets
  • 5 = >90% assets covered
  • 4 = 75-89%
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = 10-29%
  • 0 = <10% or no disclosure
Environmental Biodiversity Restoration Investments E4-5 Quantitative Restoration Investment / Total Investment
  • 5 = >5% of total
  • 4 = 3-4.9%
  • 3 = 1.5-2.9%
  • 2 = 0.5-1.4%
  • 1 = <0.5%
  • 0 = No disclosure
Environmental Decarbonization Roadmap Quality E1-1 Narrative Narrative
  • 5 = Comprehensive, science-based, near/mid/long-term targets
  • 4 = Near- and mid-term targets, science-based
  • 3 = Only mid-term targets
  • 2 = General aspiration statements
  • 1 = Minimal or vague statements
  • 0 = No roadmap disclosed
Environmental Supply Chain Emissions Management E1-5 Narrative Narrative
  • 5 = >90% suppliers covered
  • 4 = 75-89% suppliers
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = <30%
  • 0 = No action disclosed
Environmental Pollution Prevention Strategy E2-2 Narrative Narrative
  • 5 = Comprehensive prevention & response plan
  • 4 = Prevention plan only
  • 3 = Partial plan (some pollutants)
  • 2 = Early-stage plans
  • 1 = No clear action
  • 0 = No disclosure
Environmental Water Stewardship Initiatives E3-5 Narrative Narrative
  • 5 = Integrated basin-level action
  • 4 = Facility-level conservation plans
  • 3 = Water reduction targets
  • 2 = Awareness or minor initiatives
  • 1 = Minimal mention
  • 0 = No disclosure
Environmental Circular Economy Strategy E5-1 Narrative Narrative
  • 5 = Full closed-loop system
  • 4 = Partial closed-loop system
  • 3 = Strong recycling or reuse programs
  • 2 = Pilots or early trials
  • 1 = Conceptual statements only
  • 0 = No strategy disclosed
Social Gender Pay Gap S1-16 Quantitative (Avg Male Salary - Avg Female Salary) / Avg Male Salary
  • 5 = <1% gap
  • 4 = 1-5% gap
  • 3 = 6-10% gap
  • 2 = 11-20% gap
  • 1 = 21-30% gap
  • 0 = >30% gap or no disclosure
Social Employee Turnover S1-18 Quantitative Number of Departures / Average Headcount
  • 5 = <5% turnover
  • 4 = 5-9%
  • 3 = 10-14%
  • 2 = 15-20%
  • 1 = 21-30%
  • 0 = >30% turnover or no disclosure
Social Workers Union Representation S1-21 Quantitative Unionized Workers / Total Workforce
  • 5 = >90% representation
  • 4 = 75-89%
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = 10-29%
  • 0 = <10% or no disclosure
Social Training Hours per Employee S1-19 Quantitative Total Training Hours / Number of Employees
  • 5 = >40 hours/year
  • 4 = 30-39 hours
  • 3 = 20-29 hours
  • 2 = 10-19 hours
  • 1 = 1-9 hours
  • 0 = No training hours disclosed
Social Diversity Hiring Rate S1-17 Quantitative Diverse Hires / Total Hires
  • 5 = >50% diverse hires
  • 4 = 40-49%
  • 3 = 30-39%
  • 2 = 20-29%
  • 1 = 10-19%
  • 0 = <10% or no disclosure
Social Health & Safety Incidents Rate S1-22 Quantitative Incidents / Total Hours Worked
  • 5 = <0.1%
  • 4 = 0.1-0.5%
  • 3 = 0.6-1%
  • 2 = 1.1-2%
  • 1 = 2.1-5%
  • 0 = >5% or no disclosure
Social Parental Leave Uptake % S1-20 Quantitative Employees Taking Leave / Eligible Employees
  • 5 = >90% uptake
  • 4 = 75-89%
  • 3 = 50-74%
  • 2 = 30-49%
  • 1 = 10-29%
  • 0 = <10% or no disclosure
Social Community Investment % S3-4 Quantitative Community Spend / Revenue
  • 5 = >2% revenue
  • 4 = 1.5-1.9%
  • 3 = 1.0-1.4%
  • 2 = 0.5-0.9%
  • 1 = 0.1-0.4%
  • 0 = <0.1% or no disclosure
Social Human Rights Breaches S1-26 Quantitative Breaches / Total Operations
  • 5 = Zero breaches
  • 4 = <1% operations affected
  • 3 = 1-2%
  • 2 = 2-5%
  • 1 = 5-10%
  • 0 = >10% or major cases disclosed
Social Living Wage Coverage % S1-25 Quantitative Employees Paid Living Wage / Total Employees
  • 5 = 100% coverage
  • 4 = 90-99%
  • 3 = 70-89%
  • 2 = 50-69%
  • 1 = 30-49%
  • 0 = <30% or no disclosure
Social Diversity & Inclusion Strategy S1-2 Narrative Narrative
  • 5 = Comprehensive, actionable, measurable targets
  • 4 = Good strategy, partial metrics
  • 3 = General commitment, few actions
  • 2 = Weak or early-stage plan
  • 1 = Minimal D&I disclosure
  • 0 = No strategy disclosed
Social Employee Engagement Programs S1-3 Narrative Narrative
  • 5 = Regular surveys + >80% participation + clear actions
  • 4 = Surveys + moderate actions
  • 3 = Surveys only
  • 2 = Ad-hoc feedback
  • 1 = Minimal practices
  • 0 = No engagement program
Social Health & Safety Culture S1-7 Narrative Narrative
  • 5 = Proactive, integrated H&S culture
  • 4 = Advanced systems but minor gaps
  • 3 = Basic compliance only
  • 2 = Fragmented H&S programs
  • 1 = Ad-hoc procedures
  • 0 = No disclosure
Social Community Engagement Strategy S3-2 Narrative Narrative
  • 5 = Active, measurable partnerships
  • 4 = Regular engagement activities
  • 3 = Limited donations/sponsorships
  • 2 = Minimal ad-hoc activities
  • 1 = One-off initiatives
  • 0 = No community engagement
Social Human Rights Risk Management S1-5 Narrative Narrative
  • 5 = Comprehensive risk mapping + mitigation
  • 4 = Partial mapping + early mitigation
  • 3 = Risk mapping only
  • 2 = High-level screening only
  • 1 = Acknowledged but no real measures
  • 0 = No disclosure
Governance Board Diversity % G1-2 Quantitative Underrepresented Directors / Total Board Members
  • 5 = >50% diverse board
  • 4 = 40-49%
  • 3 = 30-39%
  • 2 = 20-29%
  • 1 = 10-19%
  • 0 = <10% or no disclosure
Governance Executive Pay Ratio G1-5 Quantitative CEO Pay / Median Employee Pay
  • 5 = <20x
  • 4 = 20-40x
  • 3 = 41-60x
  • 2 = 61-100x
  • 1 = 101-150x
  • 0 = >150x or no disclosure
Governance ESG-linked Executive Compensation G1-5 Quantitative Executives with ESG KPIs / Total Executives
  • 5 = >80% tied to ESG
  • 4 = 60-79%
  • 3 = 40-59%
  • 2 = 20-39%
  • 1 = 5-19%
  • 0 = <5% or no disclosure
Governance Audit Committee Independence % G1-3 Quantitative Independent Members / Total Committee Members
  • 5 = 100% independent
  • 4 = 90-99%
  • 3 = 75-89%
  • 2 = 50-74%
  • 1 = <50%
  • 0 = No disclosure
Governance Regulatory Fines Total G1-6 Quantitative Fines Paid / Revenue
  • 5 = No fines
  • 4 = <0.1% revenue
  • 3 = 0.1-0.5%
  • 2 = 0.6-1%
  • 1 = 1-2%
  • 0 = >2% or major scandals
Governance Anti-Bribery & Corruption Program G1-7 Narrative Narrative
  • 5 = Comprehensive, externally certified program
  • 4 = Full program, no certification
  • 3 = Partial program
  • 2 = Initial steps
  • 1 = Minimal efforts
  • 0 = No program
Governance Whistleblower Protection G1-7 Narrative Narrative
  • 5 = Strong anonymous reporting system + protection
  • 4 = Reporting system + partial protection
  • 3 = Basic hotline
  • 2 = Limited system
  • 1 = Minimal awareness
  • 0 = No system
Governance Board ESG Expertise G1-2 Narrative Narrative
  • 5 = >50% directors have ESG expertise
  • 4 = 30-49%
  • 3 = 10-29%
  • 2 = One director only
  • 1 = No ESG background
  • 0 = No disclosure
Governance Risk Management Framework G1-4 Narrative Narrative
  • 5 = Fully integrated with ESG risks
  • 4 = ESG considered but not fully integrated
  • 3 = Limited ESG risk processes
  • 2 = Financial risks only
  • 1 = Fragmented risk approach
  • 0 = No framework
Governance Shareholder Rights Protection G1-8 Narrative Narrative
  • 5 = Full alignment with best practice
  • 4 = Mostly aligned
  • 3 = Some misalignments
  • 2 = Weak protection mechanisms
  • 1 = Minimal shareholder rights
  • 0 = No protection or abuses

Scoring Frameworks

Environmental Scoring

Weighting:

70% Quantitative KPIs / 30% Narrative Factors

Score Range Interpretation
85-100 Industry leader
70-84 Strong with minor gaps
50-69 Reactive approach
<50 High risk

Social Scoring

Weighting:

60% Quantitative KPIs / 40% Narrative Factors

Score Range Interpretation
80-100 Workforce leader
65-79 Standard practices
50-64 Weak structures
<50 Critical failures

Governance Scoring

Weighting:

50% Quantitative KPIs / 50% Narrative Factors

Score Range Interpretation
75-100 Exemplary oversight
60-74 Adequate controls
45-59 Governance gaps
<45 Red flags

Example Calculation

60%

Environmental

85/100 × 0.60 = 51

20%

Social

70/100 × 0.20 = 14

20%

Governance

65/100 × 0.20 = 13

78
Total ESG Score

Transparency & Limitations

Our methodology has several key features:

  • Data Sources: Primarily EFRAG ESRS reports, verified with third-party data
  • Dynamic Weighting: Adjusts for regulatory changes and scientific consensus
  • Red Flags: Automatic penalties for greenwashing or contradictory practices

While comprehensive, ESG scoring cannot capture all sustainability factors - we recommend using these scores as one input among many.