Methodology
How we calculate ESG scores and find sustainable investment alternatives.
ESG Scoring
Each company is evaluated across three dimensions. Scores represent risk exposure — lower scores indicate less risk and better sustainability practices.
Environmental
- Carbon footprint — greenhouse gas emissions and carbon intensity
- Resource usage — water consumption, waste management, energy efficiency
- Renewable energy — commitment to clean energy and sustainability initiatives
Social
- Employee relations — workplace safety, diversity, and satisfaction
- Community impact — engagement and social responsibility programs
- Human rights — supply chain ethics and human rights practices
Governance
- Board structure — independence, diversity, and expertise
- Transparency — financial reporting quality and disclosure practices
- Ethics & compliance — anti-corruption measures and ethical business practices
Risk Scale
ESG risk scores map to five severity levels. Lower scores are better.
Similarity Algorithm
We use a vector similarity approach to find companies that are financially comparable but have better ESG performance.
1. Company vectorization
Each company is represented as a multi-dimensional vector: market capitalization, revenue, profit margins, P/E ratio, beta, sector, industry, and ESG scores.
2. Weighted similarity
We calculate similarity using a weighted algorithm:
3. ESG filtering
Only companies with a lower ESG risk score (better performance) than the searched company are included as alternatives. Minimum similarity threshold is 10%.
if similarity_score ≥ 0.1 AND comp_esg_total < base_esg_total → include4. Ranking
Results are sorted by ESG improvement first, then by similarity score. The top 5 matches are returned.
Data Sources
Technology
Next.js 14, TypeScript, Tailwind CSS, Recharts
Python, Flask, NumPy, yfinance
Vercel serverless, global CDN
88+ pre-loaded companies, real-time APIs
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