Motivation 🚀

Blog posts which motivated me to compose the project are:

• Databricks, Engineering blog/tutorial post by Antoine Amend
• Sustainometric blog post, ESG to SDGs

Abbreviations & Supplementary 🔤

• ESG -- Environmental, Social and Governance
• SDG -- Sustainable Developmental Goals
• GRI -- Global Reporting Initiative

Background

Sustainability standards refers to the ESG guidelines outlined by GRI. Organisations report their non-financial impacts according to the GRI framework They could be briefed as follows:

• Environmental - E
  • building economic growth within environmental degradation limits, i.e., keeping water, soil, air & biodiversity (wildlife) clean
• Social - S
  • focusing on maintenance and prosperity of the employees and their communities,
• Governance - G
  • developing ethical standards of administration within the organisation

Aim

1. Determine correlation betweeen ESG performance (acc. to GRI?) and Stock performance
2. Develop dashboard to view ESG performance at par with Stock performance

Hypothesis 🏷️

Traditional Growth Model (H0)

Value creation & ESG Reporting by Organisations do NOT CORRELATE with GRI standards and sometimes stagnates performance

Modern Growth Model (HA)

Value creation & ESG Reporting by Organisations do CORRELATE with GRI standards and leads to resilient performance

Assumption

1. Organisation's stock performance defines the economic growth of that entity.
2. Organisation's Annual sustainability reports are based on GRI standard framework and are updated.

Declaration

• I understand that there could be several possibilities to show the growth of an Organisation.
• This is my attempt to focus on one aspect of growth identifiers.
• Hence, showing the correlation between following a global ESG standard framework (GRI) and Long-term value creation.

Approach 🏗️

Sustainability profiling of Companies

• MODULE 1 - Coalesce top 100 companies list from dataset 💾

• MODULE 2 - Collect Annual Sustainability reports of these companies

• MODULE 3 - Process the reports to identify Key Sustainability Indicators (KSIs)

• MODULE 4 - Categorize KSIs into industrially acknowledged impacts:

  • EnvironmentaL - impact on land, air, water and ecosystems
  • Social - impact on employee and their families' lifestyles
  • Governance - impact of company policies governing the management of above two impacts

• MODULE 5 - Build Dashboard to visualize Stock Market performance based on their KSIs

• MODULE 6 - IF & Wherever possible, Identify :

  • Proxy data provided by services to companies
  • Outsourcing ESG activities, such as purchasing carbon offsets without improvements in Company's Sustainability