To ensure an objective assessment of companies , the following indicators have been used :
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BUSINESS PERFORMANCE SCORE
This indicator includes two metrics related to the company ' s economic strength :
Market capitalization based on purchasing power parity ( PPP ): this indicator allows for comparisons between companies from different countries , considering differences in price levels and incomes . This approach provides a more precise depiction of a company ’ s actual value in relation to its national economy ;
Normalised revenue-to-GDP ratio based on purchasing power parity : this indicator helps evaluate how effectively a company generates revenue in relation to the overall state of the country ' s economy . A high value for this metric may suggest that the company makes a significant contribution to the national economy .
2
FUTURE SCORE
This set of metrics is designed to reflect the extent to which a company is focused on the future . Developed with the help of high level experts and researchers , this Score takes into account the following :
Share of high-tech and R & D investments in relation to the company ’ s total investments and in comparison with other companies ;
Share of SDG / ESG investments in relation to the company ’ s total investments and in comparison with other companies ;
Existence and level of SDG / ESG-related certifications ;
Overall quality and long-term outlook of the corporate strategy .
3
ESG SCORE
Our approach to ESG relied on a series of metrics that evaluate a corporation ’ s compliance with the UN ’ s SDGs . These metrics have been split into three groups :
Environmental indicators : CO2 emissions levels , use of renewable energy sources , waste recycling programs ;
Social indicators : working conditions , human rights compliance , participation in social initiatives ;
Governance indicators : transparency of reporting , appointment of independent directors , adherence to corporate standards .
The diversity of existing ESG-related indicators and the lack of universally accepted formal guidelines for corporate ESG policies made our research more challenging . The complexity was further amplified by the varying cultural and social landscapes within BRICS countries . WEJ focused on a select set of indicators — those most commonly found in corporate ESG reports globally and aligned with the UN ’ s ( SDGs ).
These indicators are the following :
• Ecological Strategy Score : Assessment of the effectiveness and integrity of a company ' s pro-environment strategy , including goals related to reducing its ecological footprint ;
• Ecological Strategy Implementation Score : Assessment of how successfully a company implements its pro-environment strategy in practice ;
• Renewable Energy Usage : Proportion of a company ' s total energy consumption that comes from renewable sources , such as solar and wind ;
• Waste Management Efficiency Score : Assessment of waste management efficiency , including recycling , disposal and waste generation reduction ;
• Green Investments Score : Assessment of the share of investments in environment-friendly and sustainable projects ;
• Social Strategy Score : Assessment of a company ' s strategy in social matters , including community engagement and support for social initiatives ;
• Social Strategy Implementation Score : Assessment of how successfully a company implements its social strategy in practice ;
• Pay Equity Score : Assessment of pay equity across compensation plans for employees of different genders , races and other groups ;
• Labour Safety Score : Assessment of the level of labour safety , including measures to prevent accidents and safeguard employee health ;
WORLD ECONOMIC JOURNAL
• Employee Social Protection Score : Assessment of the extent of social protection for employees , encompassing health insurance , pension plans and other benefits ;
• Corporate Governance Score : Assessment of the quality of corporate governance , including transparency , accountability and ethical standards ;
• Corporate Governance Implementation Score : Assessment of the success of implementing corporate governance principles in company practice ;
• Corporate Governance Maturity Score : Assessment of the maturity of corporate governance systems , including their development and agility ;
• Corporate Governance Transparency Score : Assessment of transparency in corporate governance , including the availability of information to shareholders and the public ;
• Corporate Governance Supervisory Score : Assessment of the effectiveness of supervisory bodies and committees in corporate governance ;
• ESG Investments Share : Share of investments in projects that meet environmental , social and governance criteria in total company investments ;
• Sustainable Development Certification : Existence of certifications or other recognitions of a company ' s commitment to sustainable development principles ;
• Advanced Tech Investments Share : Share of investments in advanced technologies that foster innovation and higher efficiency in total company investments ;
• Corporate Strategy Quality Score : Assessment of the quality of corporate strategy , including its clarity , realism and adaptability .
These indicators offer a comprehensive and multifaceted overview of companies ’ commitment to sustainable development goals . In the case of cities , we used the City GRP ( Gross Regional Product ), which measures the total value of goods and services produced in the city over a specific period .
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