Methodology

How EcoInvestor Scores Company Audits

EcoInvestor ratings are educational research outputs. They test whether environmental claims are specific, evidenced, and aligned with company behaviour.

Every company audit is scored across three 10-point categories: carbon strategy, biodiversity and environmental protection, and governance. The rating is not a buy, sell, or hold recommendation. It is a structured view of environmental credibility.

The 30-Point Framework

Carbon Strategy

Scope 1, 2, and material Scope 3 disclosure; absolute emissions trend; SBTi or equivalent target quality; renewable energy additionality; and offset reliance.

Biodiversity

Deforestation exposure, water stewardship, site-level nature risk, circularity, pollution controls, and credible biodiversity net gain or restoration evidence.

Governance

Board oversight, executive incentives, lobbying alignment, assurance, controversies, disclosure quality, and whether sustainability claims survive source-level scrutiny.

Rating Scale

RatingInterpretationTypical evidence pattern
AAAGreen leaderStrong real-world outcomes, validated targets, aligned capex, and clear governance.
AAStrongCredible transition evidence with limited but monitorable gaps.
AAcceptable but monitoredUseful evidence, but execution, Scope 3, or biodiversity risk remains material.
BCautionClaims are incomplete, slow-moving, or contradicted by parts of the business.
C/FAvoid or high riskHigh greenwashing risk, severe harm, weak disclosure, or strategy misalignment.

Evidence Rules

  • Company disclosures are treated as claims until supported by audited data, third-party validation, or external sources.
  • Absolute emissions matter alongside intensity metrics.
  • Targets without capital allocation, interim milestones, or governance accountability receive limited credit.
  • Nature and water claims must be location-aware where the company has material physical impacts.
  • Lobbying and trade association activity can reduce governance scores when it conflicts with public climate claims.

Corrections And Updates

Audits are updated annually or after material changes such as target revisions, major controversies, new sustainability reports, acquisitions, or strategy changes. If you spot an error or have a source we should review, please use the corrections process on the contact page.

Educational use only: EcoInvestor ratings help readers assess environmental credibility. They do not assess suitability, valuation, tax, or portfolio fit.