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Target Rock Advisors
VALUE PROPOSITION
SUSTAINABILITY & SOCIALLY
RESPONSIBLE INVESTING
PRODUCTS & SERVICES
SUSTAINABILITY SCORING
& INDEXING PROCESSES
SUSTAINABLE UTILITY
LEADERS INDEX
FAQ

OVERVIEW



The Triple Bottom Line (TBL) is the foundation of Target Rock’s analysis of utility sustainability performance and related indexing.

All of the factors included in our analysis address one or more of the three legs of the TBL: Economics, Environment, and Social. We weight each of these TBL "Elements" equally at 33.3% of a company’s overall sustainability score.

At the next level and within each of these three broad TBL Elements we address various element-specific TBL "Dimensions". Our system has twelve high level dimensions and over 200 sub-dimensions, each with its own weighting.

We then analyze over 2.4 million points of industry-specific data from over 30 sources, and score each company from the bottom up. All scores -- TBL Elements and TBL Dimensions -- are measured on a 100-point scale.

For most sub-dimensions, companies are scored based on a normal distribution curve. In a few cases where the nature of a sub-dimension doesn’t lend itself to statistical curving (e.g., a yes/no dimension versus one that entails a range of unique values) we use a case-specific scoring system.

Our Sustainability and ESG related indexes are based on the results of our scoring system as is described further here.

Importantly, our scoring system is designed to assess actual TBL characteristics and performance based predominantly on objective measures and uniformly reported data. We do not rely in any significant degree on company self-reported information that is not always subject to independent verification and/or standardization. Thus, our numeric scores indicate what a company has actually done, not promises of things to come.

In focusing on actual performance we by no means discount the importance of organizational commitments to sustainability and the setting of related goals. In fact, we address the quality of a company’s sustainability commitment in the Social element of our system. However, we feel that other efforts (e.g., Global Reporting Initiative and Carbon Disclosure Project) have the “quality of reporting” ground well covered. Further, we believe that our deep industry expertise is best used in the analysis of data and information that reflect actual sustainability behavior, are operationally relevant and can be useful in performance improvement.
  • Unique, experienced-based analytic processes
  • Integrated scoring, ranking and stock index system
  • Improved line-of-sight between sustainability and stock market performance