rising waves: the second generation of esg metrics and a movement toward bringing ‘dark data’ to...

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1 Rising Waves: The Second Generation of ESG Metrics and a Movement Toward Bringing ‘Dark Data’ to Light Cynthia Figge CSRHUb and EKOS International @CSRHUB

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RisingWaves:TheSecondGenerationofESGMetricsandaMovementTowardBringing

‘DarkData’toLight

Cynthia FiggeCSRHUb and EKOS International

@CSRHUB

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Rising Waves: SecondGenerationof CSR/ESGMetrics

Bringing‘DarkData’toLight

3

CSR Reporting Has Been Driven By Both Investors and NFPs

4

>500Certifications,1,000sofRegulations100sofStandards

>1,000DifferentRatingsSystems

>100Different

“Schemas”&>5,000

“Metrics”

First Gen CSR/ESG Metrics System Has Been Confusing and Costly to Maintain

50,000Public

Companies

>200,000Private

Companies

5

Only Modest Agreement Between Major ESG Analyst Ratings

6

CSR/ESG Performance Has Strong Benefits

(Capstone)(Average) (RepRisk) (Investis)

7

Three Concepts Drive Next Generation CSR/ESG Metrics

Materiality

IntegratedReporting-IntegratingNon-financialMetrics

Broader,Long-termGoals

“Anintegratedreportisaconcisecommunicationabouthowanorganization’sstrategy,governance,performanceandprospects, inthecontextofitsexternalenvironment, leadtothecreationofvalueintheshort,mediumandlong term”

Source:IntegratedReporting<IR>

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Six Efforts to Translate Second Gen Concepts Into Practical Systems

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Most Large Companies Will Be Affected By These Standards

10

What Is Dark Data?

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CSRHub Big Data forImproved CSR Performance

491+DataSources

10LeadingESGAnalystFirms 95

MM

Dat

a Ele

men

ts

Conv

ert 3

.5K

Met

rics

Map

Nor

mal

ize

Wei

ght

PatentedProcess

Ratingson16,550companies—dataonanother134,000

DriveChangesInPerformanceandReporting

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©EKOSInternational2001

SustainableValueCreation

ECONOMICVALUEEquity&Prosperity

HUMAN&SOCIALVALUENATURALVALUE

Rising Wave Trends

AllCompaniesMustReport,NotJusttheLargest

Transparency&DisclosureinSupplyChains

IntegrationofCSRintoBusinessIntelligence

Corporate Social Responsibility Business Intelligence

CynthiaFiggeCOO&Cofounder,[email protected] 206-954-9542

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Scores 80-100 Missing in Action

DistributionofcompanyscoresonCSRHub