Quantitative Rating Methodology
The Impact Investor evaluates corporate sustainability through a dual-provider normalization matrix that synthesizes data from MSCI ESG Research, Morningstar Sustainalytics, and verified regulatory filings.
1. MSCI ESG Rating Mapping
MSCI evaluates companies on a 7-point scale from AAA (Industry Leader) to CCC (Laggard). We map industry-relative risk management across 35 key ESG issues to identify resilience against material environmental and governance disruptions.
2. Sustainalytics ESG Risk Scoring
Sustainalytics provides an absolute, unmanaged ESG risk score from 0 (Negligible Risk) to 40+ (Severe Risk). We cross-reference this absolute metric against sector benchmarks to give readers an unvarnished assessment of downside risk.
3. Financial Fundamentals & “Our Take”
ESG ratings alone do not make an investment thesis. Our editorial analysts evaluate operating cash flows, balance sheet solvency, market capitalization, and competitive moats to ensure financial viability alongside environmental impact.