ESG INTEGRATED DERIVED METRICS for the Diversity of Sustainability Investors

Constellation believes that no two investors bring the same values or priorities to their interest in sustainability – and therefore no single set of ESG metrics will serve the diverse needs of the entire investor community.  Constellation’s ESG integrated derived metrics offer a menu of refined ESG metrics that promise to meet the needs of a wide range of sustainability-minded investors.  Instead Constellation has developed a carefully curated and methodologically rigorous core set of environmental, social, and governance metrics including maturity curve analyses and measures of momentum on critical sustainability issues.


Constellation will offer a new framework of corporate ESG metrics and ratings that go beyond todays static metrics and incorporate a more dynamic ESG framework that reflects sustainability Maturity and Momentum. Constellation’s ESG metrics have been:

  • cleaned up to eliminate data anomalies and errors

  • normalized for improved comparative analysis

  • structured to highlight measured as opposed to modeled indicators

  • carefully controlled for non-reporting and missing data points

  • built out for greater data coverage using sophisticated gap-filling protocols

  • evaluated for reliability and various degrees of verification

Maturity and Momentum (M2) Sustainability Scorecard

This breakthrough analytic tool offers a data-driven and easy-to-use way to differentiate industry leaders on sustainability issues from laggards.  It places companies into a 2x2 matrix based on their sustainability vision and strategy execution.  The Scorecard thus provides a way to spotlight those companies that are Leaders in sustainability alongside those which are not yet leading but whose clear aspirations mark them as Risers.  It further provides a way to highlight companies that are paying attention to sustainability issues but from a defensive strategic posture.  And it provides a further separation of these Defenders from the true Laggards who have not yet taken sustainability issues seriously.

                     M2 Sustainability Scorecard


Portfolio Analyzer

Constellation has under development a sustainability portfolio analyzer that will help investors and investment advisors understand: (1) the range of sustainability issues across the spectrum of environmental, social, and governance concerns; (2) the sustainability performance of a stock portfolio; (3) the sustainability profile of mutual funds; and (4) how sustainability choices will affect the volatility and financial performance of their portfolios.