Bi-Annual impak Score™ Review
impak announces adjustments to its impak Scores™ and impak French 40 index™
July 29, 2020, Montreal — impak, the independent impact rating agency, announces adjustments to its rating methodology as part of its bi-annual review process. This will imply changes in impak Scores™ for 45% of our universe, and the adjustment of the IMPAK French 40 index™ ratings.
The impak Score™ ranges from 0 to 1,000, and a higher score means the organization contributes to tackle social and environmental issues in a significant way. impak’s standard and comprehensive rating methodology is based on the Impact Management Project framework and the United Nations’ 17 Sustainable Development Goals. Throughout three categories (positive impact, mitigation of negative impact and governance) the impak Score™ allows investors and asset managers to better understand the global social and environmental impact of any organization.
The current enhanced impak Score™ represents the 5th iteration of impak’s rating methodology, with a more robust algorithm and weightings thanks to the following adjustments: (i) slight changes in the Z rating methodology following a complete review of the Z rating on May 5th, 2020; (ii) implementation of an enhanced QA process and database clean-up; (iii) changes in the rounding policy; (iv) slight changes in weightings for certain data points linked to above mentioned methodology updates; and (v) update of our methodology regarding the IMP’s “unexpected risks” criteria.
The IMPAK French 40™, a benchmark index created in February 2020 based on the top 80% of the CAC 40’s index, increases from 215 to 222 out of 1,000. Twenty-one impak Scores™ of the index have been reviewed according to our adjustments. As a consequence, Publicis (FR0000130577) is replaced by Engie (FR0010208488) in the French 40 index™.