Corporate Knights KPIs
In this phase, Corporate Knights allocate each of the eligible companies in their belonging sector identified in the “CK Industry Group” list. Following, the firms are scored based on up to 21 Key Performance Indicators, which lieslie mostly with the environmental section.
These metrics are divided in two broad types: universal and industry-specific KPIs. Table 2.10 presents both the 13 industry-specific KPIs and the 8 universal metrics. However, a full description of them is provided in Table 2.11, 2.12, 2.13, and 2.14.
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All companies are scored on the universal metrics, irrespective of their industry group, whereas they are only scored for the industry-specific KPIs considered relevant for their sector. These latter metrics are defined as “priority KPIs”, and they are deemed material if their weight is greater than zero (0%) in a given “CK Industry Group”.
The same 21 KPIs are also divided into 3 macro-categories: resource, financial, and employee management KPIs, except for “sanction deductions” and “clean revenue” metrics which are categorized as “additional KPIs”.
KPIs weights
The philosophy of Corporate Knights on how to account for the weights for each KPIsKPI is the following:
«Each CK Industry Group accounts for a unique share of global impact for each KPI […]».
Since each CK Industry Group has different metrics considered with different weights as well, like for MSCI, we show the weighing KPIs for a financial sector, in this case the “Investment Services” one (see Table 2.15).
The final index: The Global 100
The Global 100 index is then populated and consists of the top-performing companies ranked from 0 to 100 against other companies in the same industry group. For eachEach sub-sector is assigned a fixed number of slots in the final Global 100 list.
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