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Our research

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.

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