We are excited to announce the launch of SESAMm’s proprietary Controversy Exposure Score (CES), a new score designed to transform how ESG and finance professionals assess risks. The CES offers a dynamic, real-time view of a company's exposure to ESG controversies, enabling fast, informed decision-making.
What is the Controversy Exposure Score (CES)?
The CES is a continuously updated score ranging from 1 to 100, reflecting a company or project's evolving exposure to ESG controversies. Leveraging SESAMm’s proprietary Intensity and Volume Scores, the CES captures both the severity and frequency of ESG incidents, allowing stakeholders to monitor and understand risks as they develop.
Below, we’ve put together an example demonstrating how the CES for Renault compares to Stellantis based on their respective ESG controversies. As we see in the chart below, Renault has had fewer high–intensity events, which results in a lower, more stable CES compared to Stellantis.
Renault CES
Stellantis CES
How Does It Work?
The CES is powered by state-of-the-art Large Language Models (LLMs) that filter and analyze content from our data lake containing over 25 billion articles.
Two main components impact the score’s value:
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- Intensity Score: Measures the severity of each ESG incident, considering its impact on a company’s reputational, stakeholder, financial, and legal standing. This score is derived from a Large Language Model (LLM) fine-tuned by SESAMm’s experts and trained on thousands of humanly annotated events.
- Volume Score: Assesses the number of articles associated with an event, calculated using a short-term rolling window. To ensure accuracy, the Volume Score is normalized against the average article volume concerning the company and relevant ESG topics over the past year, reducing potential bias.
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Key Benefits of the Controversy Exposure Score
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- Conduct initial risk assessments: Instantly evaluate a company’s risk exposure, enabling quick decision-making.
- Track ESG controversy trends: Evaluate how a company’s risk exposure has evolved. The CES is updated daily, ensuring that users have the most current data at their fingertips.
- Benchmark companies against their peers: Compare a company’s risk exposure to its peers, providing a comprehensive view of its relative risk.
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Ready to Transform Your ESG Analysis?
For more information on how the Controversy Exposure Score can help you make smarter, data-driven decisions and to see it in action, request a demo.
Reach out to SESAMm
TextReveal’s web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.