The Insight Score is a measure of a company’s longer-term track record, similar to a ratings system. Scores are less sensitive to daily events and reflect the enduring performance record of a company over time. Scores are derived using an exponentially-weighted moving average of the Pulse, defined below, and the half-life of an event’s influence on the overall score is 6 months.
The Pulse Score is a measure of near-term performance changes that highlights opportunities and controversies, enabling real-time monitoring of companies. It focuses on events of the day and provides a responsive signal to alert investors to dynamic moves.
The Momentum Score measures the trend of a company's Insight score. It is a unique metric in the industry that gives investors a high-precision view of the trajectory of a company’s ESG or SDG performance, relative to peers. It does so by precisely articulating upward or downward movement, relative to that of all others in the universe, making it a measure that enhances quantitative workflows.
Adjusted Insight, Industry Percentile and ESG Rankings
The Adjusted Insight Score ensures that all entities in the Truvalue universe have a score, compensating for low data volume for companies that are not frequently written about. For those low-volume companies only, the score augments company-specific information with contextual data based on industry peers.
The Industry Percentile Score assesses how companies are performing in comparison to their industry peers.
The ESG Ranks place each company in one of the following five tiers based on the company’s Industry Percentile Score: Leader, Above Average, Average, Below Average, Laggard.
Overall Scores & Category Scores
Overall scores like the SASB All Category score, SASB Materiality score, or SDG Impact Score are produced using a weighted average of individual category scores, where the weight utilized is the category score volume.
Category scores are derived from all scores a company receives in that category.
Scores for Aggregates including Industries, Sectors, Benchmarks, Portfolios, Watchlists
Within Truvalue Platform, another kind of aggregate scores exists: Aggregate scores for cohorts of companies, such as Portfolios or Benchmarks.
To produce those aggregate scores, the calculation depends on the score.
For overall averaging of Adjusted Insight
Adjusted Insight: Includes all volume levels, but no Delisted firms (no scores).
The calculation excludes Delisted firms, as Adjusted Insight scores are relative scores. Because many Delisted firms no longer have incoming data, they are not included as they could affect relative Adjusted Insight percentile scores for "active" firms.
For category averages
Truvalue averages high-volume (26+ articles a year) and medium-volume (5-25 articles a year), but filters out companies with low or no data (i.e., four articles or fewer in the trailing 12-month period) from aggregate average calculations.
Therefore, rankings, percentiles and aggregate scores for industries, sectors, and portfolios are not affected by companies with little or no events.
NOTE: Delisted firms are excluded from percentiles to avoid "inactive" companies affecting active company rankings. Delisted firms are not excluded from individual category averages as they provide added context for the cohort without individually affecting active company rankings.