Our research
February 15th, 2023
Research publication: Our white paper on affinity scoring.
The target of this white paper is to present a methodology allowing fund selectors to standardize and automatize ESG due diligence on funds while taking into account their internal ESG policies and performance. Unlike tools like Morningstar, which rate funds based on an ESG framework taken as a reference (namely, that of Sustainalytics), the process we present is designed to assess the affinity between a fund selector and an asset manager based on their own ESG convictions.
October 4th, 2022
Mathieu Joubrel, co-founder of ValueCo, was awarded th FIR-PRI Award for his research article Bias assessment and mitigation for ESG scoring models.
This paper investigates bias detection methods for ESG scoring models. We show how to assess and quantify the model biases both relatively to a group of peers and in absolute value. We separate endogenous bias factors used as input in the model which can be modified by analysts, and exogenous factors such as the company size, activity sector, and main geographical area. We propose a methodology to mitigate these biases and compute a score that is independent from the chosen factors. Finally, we propose a framework to detect the companies whose intrinsic performances outperform their peers independently of the exogenous biases of the model.