To create ratings for each of the 45 causes on Ethos, we first define metrics that gauge a company, stock or fund's performance.
For example, the Gender Equality cause includes metrics such as gender pay gap at a company and policies that support working mothers.
Find the metrics we use for each cause on cause profile pages.
After defining metrics for each cause, we pull in data from independent organizations, government agencies, and company reports to score companies and funds on each metric, at least once per quarter.
When there is no data available for a company, we use the average of the company's peer group (determined through publicly-available industry classification systems and company self-reported peers). We always indicate when we use peer-average data.
Find specific sources for each cause on cause profile pages.
We then convert all raw data to a standard 0-100 scale with widely-used statistical methods, such as calculating standard scores.
Raw data comes in many forms, such as true/false (e.g., has the company signed a clean energy pledge?) or a measurement (e.g., metric tons of greenhouse gas emissions). Converting each metric to a 0-100 scale allows us to combine metrics for a fuller picture of company impact.
If a metric varies significantly by industry (such as greenhouse gas emissions), we normalize raw data by comparing to industry peers. Otherwise we compare to all companies.
We then combine metric scores into a final 0-100 rating for each company and fund on Ethos, for each of the 45 causes on Ethos.