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ESG Scoring

RealizeAlpha now includes comprehensive Environmental, Social, and Governance (ESG) scoring to help you make values-aligned investment decisions.

Overview

The ESG Scoring feature provides a quantitative assessment of a company’s performance in three key areas:

• Environmental: Impact on the planet (carbon emissions, resource usage, etc.).
• Social: Impact on people (labor standards, community relations, etc.).
• Governance: Corporate leadership standards (board diversity, executive pay, ethics).

Our system aggregates data from trusted sources (powered by Yahoo Finance) to provide both individual instrument scores and a portfolio-wide weighted average.

Key Features

1. Portfolio-Level Analysis

• Weighted Average Score: Your portfolio’s overall ESG score is calculated based on the weight of each holding.
• Visual Dashboard: View your portfolio’s ESG performance in the Portfolio Analytics dashboard.
• Breakdown: See the contribution of Environmental, Social, and Governance factors to your overall score.

2. Instrument Detail View

• Integrated Card: Every stock detail page now features an ESG card located below the Fundamentals section.
• Detailed Metrics:
  • Total Score: A 0-100 score (higher is better).
  • Risk Rating: The underlying risk category (e.g., Low, Medium, High).
  • Component Scores: Individual bars for Environmental, Social, and Governance performance.
  • Controversies: Highlights any significant controversies related to the company.

3. Scoring Methodology

• Risk to Score Conversion: We convert standard ESG Risk Ratings (where lower is better) into a “Goodness Score” (0-100, where higher is better) for intuitive understanding.
  • Score = 100 - Risk Rating
• Color Coding:
  • Green (70-100): Excellent ESG performance (Low Risk).
  • Orange (50-69): Average ESG performance (Medium Risk).
  • Red (0-49): Poor ESG performance (High Risk).

How to Use

1. Portfolio View: Navigate to the “Analytics” tab in your portfolio view to see your aggregate ESG score.
2. Stock View: Tap on any stock in your watchlist or portfolio. Scroll down past the “Fundamentals” section to find the “ESG Score” card.

Technical Implementation

• Data Source: Yahoo Finance API (unofficial).
• Parallel Processing: ESG data for your entire portfolio is fetched in parallel to ensure fast loading times.
• Caching: Scores are cached in-memory to reduce network requests during your session.