The ESG X-Ray is designed to offer a comprehensive analysis of a company's Environmental, Social, and Governance (ESG) impact, ensuring compliance with the European Sustainable Finance Disclosure Regulation (SFDR).

What is the purpose of the ESG X-Ray?

By utilizing approximately 30 criteria spread across three categories of data, the ESG X-Ray allows you to assess a company's sustainability performance within its operations.

What is included in the ESG X-Ray?

The ESG X-Ray includes around 30 criteria to measure the impact of a company on its:

Environmental aspects, by calculating the company’s emissions and wastes but also on estimating the environmental threats in the company area.
Social policy regarding the human resources management, such as the gender diversity, the growth of the company workforce and the payroll management.
Governance factors by estimating the company’s trustworthiness and reliability against fraudulent acts.

How is a company’s ESG impact measured?

For all of the criteria included in the ESG X-Ray analysis, we collect data from either our X-Ray modules or using external data providers.

The ESG X-Ray report is then generated using the same methodology on all the cases you create. Our methodology is the following:

An overall score measuring the ESG impact of the company to get an overview of its performances
A score per category (environmental, social and governance) to evaluate the company policy in each area
A score per criteria to efficiently identify the areas within the company that requires improvements
The measurement associated to each criteria and used to calculate the score

Generate an ESG X-Ray score and report when creating a case

An ESG score is generated using the information provided in the case every time a case is created on Risk Assessment. This score contains three layers of details:

The overall ESG score of the company, which reflects its performance in ESG policy.
A score by category (Environmental, Social, and Governance) that evaluates performances per ESG topic.
A score by criterion that allows the detection of areas where the company needs to improve.

Requirements to generate an ESG X-Ray report

To comply with the European Sustainable Finance Disclosure Regulation (SFDR), the ESG X-Ray needs to be fed with several types of data we gather from external databases, other October Connect modules and your client company.

From the 30+ criteria analysed by ESG X-Ray, only 4 are based on declarative questions to be asked to your client. If some of these elements are missing, the overall ESG score and the score per category won’t be generated:

Information required	Criteria related
Business identification number	Legal proceedings
ESG questionnaire to the company	• Job creation
• Job protection
• ESG Labels
• Workforce gender diversity
Number of employes	• Job creation
• Job protection
Bank Statement	Social security & tax payments
Any document	Fraud & transparency management
NACE code	All environmental criteria

ESG X-Ray highlights missing information to help you achieve the most complete score possible, even when some information is missing.

Updating the ESG score

The ESG score will be updated every time one of the information (listed above) used to generate the score is updated. For example, if you add a new bank statement, a up-to-date ESG score will be generated and displayed in the ESG X-Ray.

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Concepts: Financial X-Ray

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