The methodology for the ranking is based on Six Principles:
• Public availability of data
• Engagement with eligible companies
• Stakeholder inclusion
Sustainability performance is measured using all key environmental performance indicators (KPI), which are disclosed by at least 10% of industry peer group companies. KPI scoring weights are:
1. Combined Energy Productivity Score (Weight: 15%)
2. Combined GHG Productivity Score (Weight: 15%)
3. Combined Water Productivity Score (Weight: 15%)
4. Combined Waste Productivity Score (Weight: 15%)
5. Green Revenue Percent Range (Weight: 20%)
6. Sustainability Pay Link (Weight: 10%)
7. Sustainability Board Committee (Weight: 5%)
8. Audited Environmental Metric (Weight: 5%)
On the flip side, there are deductions, too.
1. Monetary fines paid or payable (Maximum deduction of 5%)
The company's monetary fines, penalties, and settlements (if any) as a percentage of sales (2013, 2014 and 2015) is calculated. If that ratio is in the bottom quartile against same GICS Industry peers, a deduction of 5% is applied.
2. Products/ services category (Maximum deduction of 5%)
Companies which are deriving a majority of their revenue from coal operations, tobacco and weapons manufacturing receive a deduction of 5% due to the harmful impacts of such products/services.