SG

Green AI

Sustainability Index Methodology

The Sustainability Index uses a hybrid AHP + Entropy model to convert long sustainability disclosures into a consistent, explainable score.

How Scoring Works

AHP + Entropy Hybrid Pipeline

AHP captures expert priority across ESG differentiators. Entropy adjusts weights using disclosure information density from the extracted report data.

Step 1

Source Capture

We ingest integrated, sustainability, and annual report disclosures, then extract text, tables, and evidence signals.

Step 2

Metric Extraction

We structure ESG disclosures into measurable indicators, including the 10 differentiator metrics used for hybrid scoring.

Step 3

Normalization

Each metric is normalized to a comparable 0-1 scale with direction handling (higher-better vs lower-better).

Step 4

Hybrid Weights

Final metric weights combine AHP (subject-matter priorities) and Entropy (data-driven information content).

Step 5

Final Index

Overall score is computed on a 0-100 scale with missing-metric penalties to reward transparent disclosure quality.

Scoring Formula

Hybrid Weights
w_final = 0.6 * w_AHP + 0.4 * w_entropy

Balances expert judgment with objective signal strength from extracted metrics.

Index Score
score = 100 * Sigma(w_final_i * x_i) - missing penalties

Missing critical disclosures reduce score, rewarding reporting completeness and traceability.

# Metric Direction AHP Weight
1 Scope 3 GHG Emissions Intensity Lower Better 0.150
2 Water Stress-Adjusted Usage Lower Better 0.100
3 Biodiversity Impact Lower Better 0.080
4 Hazardous Waste Recycling Rate Higher Better 0.120
5 Gender Diversity on Board Higher Better 0.090
6 Employee Turnover Rate Lower Better 0.070
7 Community Investment (% of profits) Higher Better 0.070
8 Board Independence Higher Better 0.080
9 ESG-Related Fines per Revenue Lower Better 0.090
10 Sustainable Revenue Share Higher Better 0.150

Rating Bands

Interpretation bands for the final 0-100 Sustainability Index score.

81-100
World-class
61-80
Leader
41-60
Average
21-40
Weak
0-20
Critical

Why Participation Matters

Does it matter to be part of the Sustainability Index?

Yes. Inclusion creates a visible, comparable sustainability profile that can support financing decisions, supplier qualification, and executive planning.

Lower Cost of Capital

Banks, lenders, and investors increasingly price ESG quality into credit terms and portfolio allocations.

Stronger Procurement Position

Global and regional buyers prefer suppliers with credible sustainability disclosures and measurable progress.

Regulatory Readiness

Structured ESG evidence supports faster response to evolving reporting, assurance, and compliance expectations.

Benchmark Visibility

Inclusion lets leadership compare performance against peers, identify gaps, and prioritize high-impact improvements.

Next Step

Join the Sustainability Index

Submit your latest report or request onboarding support. We will process your disclosures into a structured Sustainability Index profile.

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