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

Sustainability Scoring and Ranking Principles



Target Rock subscribes to the principle that sustainability data sources, as well as scoring and ranking processes, need to be as well-defined, user-friendly and transparent as possible within the confines of appropriate intellectual property protections.

Our guiding principles are:

  1. The focus of any particular scoring system should be sector specific, since every sector has unique characteristics that prevent broad, one-size-fits-all application of multi-sector criteria and analytical methodologies
  2. Analysts should have significant sector-specific expertise to ensure correct model specifications and data quality
  3. Data sources and formats should be standard across all companies analyzed and independently verifiable
  4. The scoring company should be devoid of conflict of interest, or at the least, fully disclose potential conflicts and describe how conflict risk is managed.
  5. The scoring organization should be guided by a board of advisors with industry and sustainability expertise
  6. Where the board of advisors might experience a conflict, procedures should be in place to minimize the risk of such conflict, and those procedures disclosed
  7. Scoring criteria, data sources and methodologies should be routinely reviewed by the advisory board or qualified third parties and changes disclosed in a timely manner.
  8. With appropriate consideration to the avoidance of conflict of interest, the scoring organization should engage outside stakeholders (e.g., the rated companies, investors using the ratings, and the media covering the ratings) through active outreach, including on-site and electronic visitations
  9. Means should be available for the rated companies, as well as other stakeholders, to understand the scoring process and the sensitivity of their scores to critical assumptions used
  10. Key data and results should be readily accessible, and practically usable, to all stakeholders
10 building blocks of transparency, analytic excellence, corporate integrity and accountability