# ESG Scoring Request

**Company:** {{company}}
**Framework:** {{framework}}
**Question:** {{question}}

**Additional Context (if provided):**
- Sector: {{sector}}
- Focus Area: {{focusArea}}

Using the ESG scoring framework below, perform a comprehensive sustainability assessment of this company. Apply the specified framework and focus area. If specific company data is not available, use sector benchmarks and clearly flag assumptions.

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# ESG Scoring Reference

## ESG Rating Scale

| Rating | Score | Description |
|--------|-------|-------------|
| AAA | 8.6-10.0 | Leader: Best-in-class ESG practices |
| AA | 7.1-8.5 | Leader: Above-average performance |
| A | 5.7-7.0 | Average: In line with industry standards |
| BBB | 4.3-5.6 | Average: Mixed performance |
| BB | 2.9-4.2 | Laggard: Below average with material risks |
| B | 1.4-2.8 | Laggard: Poor practices and high exposure |
| CCC | 0.0-1.3 | Laggard: Significant unmanaged risks |

## Environmental (E) Scoring

### Climate & Carbon Metrics

**Scope 1 Emissions:** Direct emissions from owned/controlled sources
- Fuel combustion, process emissions, fugitive emissions
- Measured in metric tons CO2 equivalent (tCO2e)

**Scope 2 Emissions:** Indirect emissions from purchased energy
- Electricity, steam, heating, cooling
- Report market-based AND location-based

**Scope 3 Emissions:** All other indirect emissions in value chain
- Upstream: purchased goods, transportation, commuting, capital goods
- Downstream: product use, end-of-life, investments
- Typically 70-90% of total footprint for most companies

**Carbon Intensity:** tCO2e / $M Revenue (or per unit of output)

| Sector | Scope 1+2 Intensity (tCO2e/$M Rev) | Best-in-Class |
|--------|--------------------------------------|---------------|
| Oil & Gas | 200-1000 | < 150 |
| Utilities | 300-1500 | < 100 (renewables) |
| Materials/Mining | 100-500 | < 80 |
| Industrials | 30-150 | < 25 |
| Technology | 5-30 | < 5 |
| Healthcare | 10-50 | < 10 |
| Financials | 3-15 | < 3 |
| Consumer | 10-60 | < 10 |

### Climate Targets Assessment

| Target Type | Description | Score |
|------------|-------------|-------|
| Net Zero by 2050 + SBTi validated | Science-based, independently verified | 10/10 |
| Net Zero by 2050 + interim targets | Credible pathway with milestones | 8/10 |
| Net Zero pledge, no interim | Aspirational but lacks specifics | 5/10 |
| Reduction target only | Limited ambition | 3/10 |
| No climate target | Material risk unaddressed | 0/10 |

### Other Environmental Metrics

| Metric | Measurement | Best Practice |
|--------|------------|---------------|
| Renewable Energy % | Renewable / Total energy consumed | > 75% |
| Water Withdrawal Intensity | m3 / $M Revenue | Declining trend YoY |
| Water Recycling Rate | Recycled / Total withdrawal | > 50% |
| Waste Diversion Rate | Diverted from landfill / Total waste | > 80% |
| Hazardous Waste | Tons generated and disposal method | Declining, zero incidents |
| Biodiversity | Land rehabilitation, no-go commitments | Policy + measurable action |
| Circular Economy | Product recyclability %, take-back programs | Quantified targets |

## Social (S) Scoring

### Workforce Metrics

| Metric | Measurement | Leading Practice |
|--------|------------|------------------|
| Employee Diversity (Women) | % women in workforce | > 40% overall |
| Women in Leadership | % women in VP+ roles | > 30% |
| Ethnic/Racial Diversity | % underrepresented groups | Publish EEO-1 data |
| Gender Pay Gap | Adjusted pay ratio (women:men) | > 0.98 |
| CEO Pay Ratio | CEO total comp / median worker | < 200:1 |
| Employee Turnover | Voluntary turnover rate | < 15% |
| Training Investment | $ per employee per year | > $1,500 |
| Employee Satisfaction | Survey score or Glassdoor | > 4.0/5.0 |

### Health & Safety

**Total Recordable Incident Rate (TRIR):**
TRIR = (Number of injuries x 200,000) / Total hours worked

| Industry | Average TRIR | Best-in-Class |
|----------|-------------|---------------|
| Construction | 3.0-4.0 | < 1.0 |
| Manufacturing | 3.0-4.0 | < 1.5 |
| Mining | 2.0-3.0 | < 1.0 |
| Tech/Office | 0.5-1.5 | < 0.5 |
| Retail | 3.0-4.0 | < 2.0 |

**Lost Time Injury Frequency Rate (LTIFR):**
LTIFR = (Lost time injuries x 1,000,000) / Total hours worked

**Fatality Rate:** Zero fatalities is the only acceptable target.

### Supply Chain Standards

| Criterion | Score 0 | Score 5 | Score 10 |
|-----------|---------|---------|----------|
| Supplier Code of Conduct | None | Published | Published + enforced with audits |
| Supply Chain Audits | None | Sample audits | 100% Tier 1, sample Tier 2 |
| Conflict Minerals | No policy | Policy only | Full traceability + reporting |
| Modern Slavery | No statement | Statement only | Due diligence + remediation |
| Supplier Diversity | No program | Targets set | Targets met, program growing |

### Community & Human Rights

| Metric | Measurement |
|--------|------------|
| Community Investment | % of pre-tax profit (target > 1%) |
| Philanthropic Giving | Total $ + % employee participation |
| Human Rights Due Diligence | UNGP alignment assessment |
| Data Privacy | Incidents, GDPR/CCPA compliance |
| Product Safety | Recalls, adverse events, complaints |
| Access & Affordability | Pricing programs, underserved market access |

## Governance (G) Scoring

### Board Composition

| Metric | Weak | Average | Strong |
|--------|------|---------|--------|
| Board Independence | < 50% | 50-75% | > 75% |
| Board Gender Diversity | < 20% women | 20-30% | > 30% |
| Board Ethnic Diversity | < 15% | 15-25% | > 25% |
| Average Board Tenure | > 12 years | 6-12 years | 3-8 years |
| Board Size | < 7 or > 15 | 7-12 | 9-11 |
| CEO/Chair Separation | Combined | Lead independent director | Fully separated |
| Board Refreshment | No new members 3+ yrs | Periodic additions | Regular assessment + rotation |
| Director Overboarding | > 4 boards | 3-4 boards | <= 2 other boards |

### Executive Compensation

| Criterion | Score 0 | Score 5 | Score 10 |
|-----------|---------|---------|----------|
| Pay-Performance Alignment | No link | Short-term metrics only | LT metrics (TSR, ROIC) > 50% |
| Clawback Policy | None | Trigger on restatement | Broad triggers + enforced |
| Stock Ownership Guidelines | None | 1-3x salary | 5x+ salary, holding periods |
| Say-on-Pay Approval | < 70% | 70-90% | > 90% |
| ESG Metrics in Comp | None | Qualitative mention | Quantified ESG KPIs with weight |

### Shareholder Rights

| Right | Weak | Strong |
|-------|------|--------|
| Voting Structure | Dual-class with >10:1 | One share, one vote |
| Proxy Access | None | 3%/3yr threshold |
| Special Meeting Right | > 25% threshold | 10-15% threshold |
| Written Consent | Not allowed | Allowed |
| Poison Pill | In place, no sunset | None or sunset < 1 year |
| Supermajority Provisions | Required for key votes | Simple majority |

### Anti-Corruption & Ethics

| Criterion | Assessment |
|-----------|------------|
| Anti-bribery Policy | FCPA/UK Bribery Act aligned, training coverage |
| Whistleblower Program | Anonymous, non-retaliation, third-party managed |
| Political Spending Disclosure | Full disclosure of lobbying + contributions |
| Tax Transparency | Country-by-country reporting, effective rate |
| Related Party Transactions | Disclosure, board approval, conflict management |

## SASB Materiality Matrix

SASB identifies financially material ESG issues by sector. Key material issues by selected sectors:

| Sector | Material E Issues | Material S Issues | Material G Issues |
|--------|------------------|------------------|------------------|
| Technology | Energy mgmt, e-waste | Data privacy, labor, content | IP, competitive behavior |
| Healthcare | Waste, emissions | Access, safety, pricing, trials | Ethics, marketing |
| Financials | Climate risk, lending | Financial inclusion, data | Systemic risk, comp |
| Energy | GHG, water, spills | Health & safety, community | Reserves, lobbying |
| Consumer | Packaging, sourcing | Supply chain, nutrition, safety | Marketing, labeling |
| Industrials | Emissions, efficiency | Worker safety, training | Product quality, ethics |
| Real Estate | Energy, water, resilience | Tenant health, community | Land use, governance |

## TCFD Framework

### Four Pillars of TCFD Disclosure

**1. Governance:**
- Board oversight of climate-related risks and opportunities
- Management role in assessing and managing climate risks
- Climate committee or designated board responsibility

**2. Strategy:**
- Climate risks and opportunities over short, medium, long term
- Impact on business, strategy, and financial planning
- Scenario analysis (well below 2C, 2C, 4C pathways)

**3. Risk Management:**
- Processes for identifying and assessing climate risks
- Integration into overall risk management
- Transition risk vs physical risk assessment

**4. Metrics & Targets:**
- Scope 1, 2, 3 emissions
- Climate-related targets and progress
- Internal carbon pricing

### Climate Risk Categories

| Risk Type | Examples | Financial Impact |
|-----------|---------|------------------|
| **Transition - Policy** | Carbon tax, emissions caps | Increased operating costs |
| **Transition - Technology** | Clean tech disruption | Stranded assets, R&D costs |
| **Transition - Market** | Shifting consumer preferences | Revenue decline |
| **Transition - Reputation** | Stigmatization, greenwashing | Brand damage, talent loss |
| **Physical - Acute** | Hurricanes, floods, fires | Asset damage, supply disruption |
| **Physical - Chronic** | Sea level rise, temperature | Relocation, infrastructure costs |

### TCFD Scoring

| Dimension | 0 (None) | 1 (Partial) | 2 (Full) |
|-----------|----------|------------|----------|
| Governance disclosure | No mention | General statement | Detailed board/mgmt roles |
| Strategy + Scenarios | No analysis | Qualitative only | Quantitative scenario analysis |
| Risk management integration | Not integrated | Partially integrated | Fully integrated + disclosed |
| Metrics + targets | No Scope data | Scope 1+2 only | All scopes + SBTi targets |
| **Total TCFD Score** | 0/8 | 4/8 | 8/8 |
