Our Methodology
Understanding how we calculate ESG scores and find sustainable investment alternatives
ESG Scoring Algorithm
Environmental
Carbon Footprint
Measures greenhouse gas emissions and carbon intensity
Resource Usage
Evaluates water consumption, waste management, and energy efficiency
Renewable Energy
Assesses commitment to clean energy and sustainability initiatives
Social
Employee Relations
Evaluates workplace safety, diversity, and employee satisfaction
Community Impact
Measures community engagement and social responsibility programs
Human Rights
Assesses supply chain ethics and human rights practices
Governance
Board Structure
Evaluates board independence, diversity, and expertise
Transparency
Measures financial reporting quality and disclosure practices
Ethics & Compliance
Assesses anti-corruption measures and ethical business practices
Risk Scoring System
Score Interpretation
Data Sources
• Alpha Vantage: Real-time ESG ratings and financial data
• Yahoo Finance: Market data and company information
• SEC Filings: Regulatory compliance and governance metrics
• Sustainability Reports: Company ESG initiatives and progress
Vector Similarity Algorithm
How We Find Sustainable Alternatives
1. Company Vectorization
Each company is represented as a multi-dimensional vector containing:
- Market capitalization (normalized)
- Revenue and profit margins
- P/E ratio and beta coefficient
- Sector and industry classification
- ESG scores (Environmental, Social, Governance)
2. Similarity Calculation
We use a weighted similarity algorithm that considers:
- Sector Match (40%): Companies in the same sector get higher similarity scores
- Financial Metrics (40%): Market cap, revenue, and profitability comparisons
- Industry Match (20%): Additional points for same industry classification
3. ESG Filtering
Only companies with better ESG scores (lower risk) are shown as alternatives:
if similarity_score ≥ 0.1 AND comp_esg_total < base_esg_total:
include_in_alternatives()4. Ranking & Selection
Results are ranked by ESG improvement (better scores first), then by similarity score. We return the top 5 most similar companies with superior ESG performance.
Technology Stack
Frontend
Next.js 14
React framework with App Router for optimal performance
TypeScript
Type-safe development with enhanced developer experience
Tailwind CSS
Utility-first CSS framework for rapid UI development
Recharts
Interactive charts and data visualization
Lucide Icons
Beautiful, customizable SVG icons
Backend
Python 3.9
Core backend language for data processing
Flask
Lightweight web framework for API endpoints
NumPy & Pandas
Data manipulation and numerical computations
yfinance
Real-time stock market data and pricing
Alpha Vantage API
ESG ratings and comprehensive financial data
Infrastructure
Vercel
Serverless deployment platform for both frontend and backend
Serverless Functions
Auto-scaling API endpoints with global CDN
GitHub
Version control and automated deployments
CORS
Cross-origin resource sharing for secure API access
Data & Algorithms
In-Memory Caching
88+ pre-loaded companies for fast autocomplete
Vector Similarity
Custom algorithm for finding similar companies
Real-time Data
Live stock prices and ESG scores via APIs
Error Handling
Comprehensive logging and graceful fallbacks
Code Architecture
Project Structure
Frontend Structure
frontend/ ├── app/ # Next.js App Router │ ├── page.tsx # Main dashboard │ ├── methodology/ # This page │ └── layout.tsx # Root layout ├── components/ # Reusable components │ ├── StockSearch.tsx # Search functionality │ └── ui/ # UI components ├── lib/ # Utilities │ └── config.ts # API configuration └── public/ # Static assets
Backend Structure
vercel-deploy/ ├── api/ # Serverless functions │ ├── stock_suggestions.py # Autocomplete API │ ├── stock_details.py # Company details API │ └── health.py # Health check ├── vector_similarity.py # Core algorithm └── vercel.json # Deployment config
Key Algorithms
Vector Similarity Calculation
Uses weighted Euclidean distance with sector matching and financial metrics comparison
ESG Filtering
Only returns companies with lower ESG risk scores than the searched company
Real-time Price Fetching
Integrates yfinance and Alpha Vantage APIs for live market data
Performance & Scalability
Performance Features
Scalability
Ready to Start Sustainable Investing?
Use our advanced ESG scoring algorithm to find companies that align with your values and offer better sustainability performance.
Start Investing