How do you measure the sustainability performance of a company or fund?

Measuring the sustainability performance of a company or fund involves assessing its environmental, social, and governance (ESG) practices. There are different ways to measure sustainability performance, but some common methods include:

1. ESG ratings: These are scores assigned to companies or funds based on their ESG performance. ESG ratings agencies use various criteria to evaluate companies or funds and assign scores based on how well they meet the criteria.

2. ESG metrics: These are specific metrics used to evaluate a company or fund's ESG performance. Examples include carbon emissions, employee turnover, and board diversity.

3. ESG disclosure: This involves analyzing the company or fund's public reporting on ESG issues. This can include annual sustainability reports, SEC filings, and other disclosures.

4. Thirdparty certifications: Some companies or funds obtain certifications from thirdparty organizations to demonstrate their sustainability performance. Examples include B Corp certification and the Dow Jones Sustainability Index.

It's important to note that there is no single standard for measuring sustainability performance, and different methods may produce different results. Investors should carefully consider their goals and values when selecting a method for measuring sustainability performance.