AE4RIA Metrix – Services & Tools
- 1. Corporate Sustainability Performance and Reporting Tools
- 2. Corporate Sustainability Pathways / Optimize Interventions
- 3. ESG/ SDG Footprint of Financial Portfolios
1. Corporate Sustainability Performance and Reporting Tools
AE4RIA has developed a holistic 3-step approach to help companies built their ESG quantification and reporting tools which integrates the Sustainable Development Goals (Koundouri and Landis, 2023a).
Framework includes the mapping of the value chain (Figure 1), a materiality assessment (Figure 2), the definition of quantitative Key Performance Indicators (KPIs) at various scales (Figure 3, generic – applies to all companies -, sector specific – applies to companies incorporating in a specific sector – and unit specific – applies to different units across the companies’ value chain) as well as the setting of the companies targets to 2030 and 2050. The Long List of AE4RIAs KPIs is compatible and in line with the Corporate Sustainability Reporting Framework (CRSD) and all currently applied frameworks (GRI, SASB, IIRC, CDP etc.).
The double Materiality assessment and the metrics used in the analysis are compatible with the First set of European Sustainability Reporting Standards (ESRS):
- ESRS 1 and ESRS 2: The Cross-Cutting Standards
- ESRS E1-E5: The Topical Environmental Standards
- ESRS G1: The Topical Governance Standard
- Climate Delegate Act
- Disclosures Delegate Act
- Environmental Delegate Act
The corporate sustainability assessment framework dynamically maps the ESG to the SDGs (Figure4), which are more holistic and reveal the complex interdependencies between the ESG KPIs in the implementation of the SDGs. To facilitate the responses of the companies and to increase synergies with the metrics proposed by the Athens Stock Exchange, when this is possible, the KPIs will follow closely the ASE definitions.
2. Corporate Sustainability Pathways / Optimize Interventions
Dashboard combines sustainability dashboards with Financial Indicators. This decision-making tool helps companies in testing scenarios to shortlist and optimize for its portfolio of interventions. Models provide also the calculation for the pathways, e.g. give the user the opportunity to test interventions applied on different horizons.
3. ESG/ SDG Footprint of Financial Portfolios
AE4RIA offers multifactor Asset Pricing Models and asset pricing factors to assess the ESG and SDG footprint of financial portfolios (Banks, Insurance Companies, Funds).
Dashboards calculate the sensitivity of financial portfolios against factors that mimick for Good and Bad performance relative to ESG, Environmental, social and Governance Pillars, as well as 12 material issues under ESGs. Finally factors to measure the level of Greenwashing are also available.
AE4RIA metrix also offer a set of novel asset pricing factors mimicking for the performance against SDGs and dashboards to calculate the SDG footprint of financial portfolios.
