Environmental Social Governance ESG Data FAQ

Frequently Asked Questions

This FAQ covers the contextual ESG data and insights created and curated by TISCreport.

What is contextual ESG data?

Contextual ESG data is data that relates key ESG metrics to the compliance-related behavioural indicators of an organisation. Unlike uncontextualised ESG data, it is much easier to judge the true intentions behind ESG actions of an organisation using available context (relationships with suppliers, buyers, regulators etc). TISCreport aims to aggregate and curate contextual ESG data in order to ensure that real impact is being measured.

What is an ethical company and how does it relate to ESG?

According to an article in the Guardian "A truly ethical company will be one that is not causing damage to the environment, exploiting its workforce by paying low wages, using child labour, or producing products which are harmful or dangerous."

Positive criteria include best of class (showing committed and consistent progress on improving their environmental and human rights records in their business operations) and thematice investment (into e.g. reusable energy, education, health care, telecommunications, or public transport).

On the negative criteria side you would look for whether or not there were links or investments into arms and armaments, companies which produce tobacco or alcohol and companies which have a poor record on pollution control. That's where the supply chain context comes in (and pension funds).

What is ESG?

ESG stands for Environmental, Social, and Governance. It is a set of criteria used to evaluate the sustainability and societal impact of companies, and is often used in the context of responsible investing. Environmental factors include a company's impact on the natural world, such as its carbon footprint and environmental policies.

Social factors include a company's treatment of its employees, suppliers, and customers, as well as its impact on the communities in which it operates.

Governance factors include a company's leadership, internal controls, and transparency.

Organisations that satisfy ESG criteria are more likely to perform well financially in a sustainable manner than those that do not.

how does transparency relate to corporate governance?

Transparency is a key aspect of corporate governance as it allows stakeholders to better understand the actions and decisions of a company. This can include financial reporting, disclosure of potential conflicts of interest, and clear communication of company policies and procedures. By being transparent, a company can build trust with its stakeholders and demonstrate its commitment to responsible and ethical behavior. Additionally, transparency can also help to prevent and detect misconduct within a company. It is a fundamental part of the TISCreport mission to help organisations understand their own transparency and that of their suppliers in order to meaningfully hold themselves accountable to themselves and their stakeholders.