FAQ’s | SUSTCO

FAQ's

Some of the commonly asked questions about SUSTCO

What does the word SUSTCO mean/where does it come from?

The SUSTCO, or “Sustainable Company” rating, was coined by CRD Global President Gene Okun. It is the first of its kind, cutting edge platform for reporting and scoring sustainability performance of publicly traded companies.

Does my company currently have a SUSTCO score/How do you decide which companies to rate?

There are currently 3000 SUSTCO reports available. Companies that meet a minimum threshold of ESG reporting are scored and rated.

My company has a SUSTCO score – where do I find out what the score is?

You can purchase a SUSTCO score, rating, and report on our purchase report page.

What makes this score different from other rankings?

SUSTCO is a unique hybrid scoring methodology that was specifically developed to facilitate well-informed investment decisions on thousands of publicly traded companies that report environmental, social, governance (ESG) and financial performance data. Using the highest quality data source, the SUSTCO Score methodology incorporates a series of algorithms that systematically filter and analyze leading, lagging, and predictive indicators, which result in a snapshot of valuable and actionable intelligence.

How is the SUSTCO score calculated?

The SUSTCO Score is comprised of 4 dimensions (Environmental, Social, Governance and Financial), each dimension has 10 quantitative indicators thus providing a decile-based scoring from 0-100. The average of scores across all 4 dimensions is calculated to derive the SUSTCO Score. The SUSTCO methodology evaluated and selected the 40 indicators that best represent overall performance.

How was the selection of score factors determined?

The selection process of score factors is a combination of quantitative studies as well as primary research from years of consulting with the United Nations, Institutional investors (UBS, Morgan Stanley, BofA) and over 50 large corporate engagements (AEP, UPS, FedEx, Xcel Energy, Xylem, etc.). These studies, analysis, and benchmarkings have been conducted over the past 12 years. The summation of this work is that the score factors are proven to correlate with performance and shareholder value.

How often do the factors change?

Every 2 years, we thoroughly review, analyze and update the methodology.

Are scores weighted?

There is no application of subjective weightings to any indicators. Over a decade ago, when CRD Global (then CRD Analytics) was chosen by Nasdaq to run their flagship sustainability index the NQCRD, they said that one of the most important factors in their decision was that we had a rules based methodology and didn’t have subjective weightings like other index firms at the time. They found this valuable, credible and attractive to their investor client base.

Where does the data that informs the SUSTCO Score come from?

All data acquisition is automated via the FastINDX platform with ESG and Financial data feeds from Refinitiv/TR/Factset. A configuration process stage is conducted to ensure oversight and quality assurance of data.

Does the FastINDX tool allow experimentation with alternate weighting schemes across factors and across categories?

The FastINDX tool supports a broad range of pre-built (150+) weighting factors that can be further combined in an alternative weighted scheme (e.g. 50% weighted by inverse Vol, and 50% based on free-float market cap).

Where can I learn more about the SUSTCO methodology?

CRD Global, CEO, Michael Muyot developed the SUSTCO Score methodology in 2019, and wrote a methodology white paper to explain the methodology in detail. You can find the white paper here.

Do you offer benchmarking reports or advisory services to help companies assess and improve their score?

Yes, in addition to the Company Snapshot reports – a quick overview a company’s sustainable performance, an in-depth Company Diagnostic report is available. Go to sustcoscore.com to order. SUSTCO offers scores, ratings, and reports on publicly traded company’s performance. To learn more about bespoke analysis and/or advisory services, visit CRDGlobal.com.

What is the Sustco 1000?

The Sustco 1000 is a chosen portfolio index of 1000 publicly listed companies in the United States listed exchanges of NASDAQ or NYSE and a benchmark as related to companies within the universe of companies listed at SustcoScore Inc.