A question I am often asked is whether at Ascentys we run a qualitative or quantitative analysis to measure the Sustainability performance of companies.
The short answer is “both”.
A quantitative approach allows a company to compare its current performance to the previous year, set targets for the next year, and understand its place among its peers. The metrics guarantee a certain level of objectivity and consistency, which is crucial not only for company management, but also for investors, NGOs and potential clients.
However, the modus operandi is different at every company. Each has its own management culture, own way of data interpretation, and unique approach to corporate responsibility. Both to capture these differences, and to understand the interconnected nature of various ESG topics, qualitative approach is indispensable.
For example, numerical analysis gives you how many tons of CO2 are reduced thanks to the recent company initiatives. Maybe there is a 5% decrease in Scope3 thanks to the new Work From Home policy. But you’d need a qualitative approach to see how these initiatives work in tandem with other Sustainability projects and affect certain KPIs, such as employeeengagement and recruitment success.
ESG spanning across dozens of sub-domains, and appearing in the agenda of the smallest companies, I believe that quantifying and contextualizing impact will become increasingly important every passing day.
We’d be happy to hear your thoughts on this. Feel free to reach us at ozge.ozdemir@ascentys-esg.com with your remarks.
