Controversy Exposure Score

The Controversy Exposure Score (CES) is a continuous score ranging from 0 to 100. It provides an ongoing, real-time measure of a company’s exposure to risk, helping stakeholders understand and monitor risk over time.

Three main components impact the score’s value:

• Intensity Score: This is based on SESAMm’s Intensity Score. It measures the severity of each ESG controversy, considering its impact on a company’s reputational, stakeholder, financial, and legal standing. This score is derived from a Large Language Model (LLM) fine-tuned by SESAMm’s experts and trained on thousands of humanly annotated events.
• Volume Score: The Volume Impact assesses the number of articles associated with an event, calculated using a short-term rolling window. To ensure accuracy, the Volume Impact is normalized against the average article volume concerning the company and relevant ESG topics over the past year, reducing potential bias.
• Novelty Impact: The Novelty Impact reflects how recent an event is. New controversies typically carry greater weight, as the market has already absorbed information from older cases. Fresh events are therefore considered more significant in evaluating a company’s current risk exposure.

The CES is calculated at the end of the ESG pipeline. For more information on the ESG pipeline, visit here.