Calculated Indicators
This help section introduces the indicators used on the Recomentor platform and explains how they are calculated.
This help section introduces the indicators used on the Recomentor platform and explains how they are calculated.
The Recomentor platform allows assessment of ESG reports according to three indicators:
Level of specificity: This measure assesses whether a company is reporting on all topics related to a framework, i.e. the level of detail of their reporting. Formally, this is measured via the penetration rate, which calculates how many sub-topics of a given topic are covered in a report.
Level of ambition: This feature helps users assess how integral each ESG topic is to a company's strategy by evaluating the number of risks and opportunities tied to the topic. It offers a preview of the relative importance of ESG issues with focus on how these issues align with corporate priorities. The level of ambition is calculated by analyzing the degree of centrality, factoring in the number of connections, disclosure details, and the depth of specificity in addressing these topics.
Level of impact: This measure evaluates how thoroughly a company covers both direct and indirect operations in its ESG disclosures, including upstream (supply chain) and downstream (product usage and disposal) activities. It calculates the depth of reporting, focusing on whether the company considers the entire product life cycle or only certain stages. The level of impact is calculated using the penetration rate, reflecting how comprehensively ESG factors are integrated across the company’s value chain and operations.