A template for the ESG score calculation

An efficient calculation of suppliers' ESG (Environmental, Social, Governance) scores is crucial to assess their sustainability performance and reliability and to ensure that they meet the company's requirements and expectations. Especially in the wake of growing regulatory requirements and rising sustainability and compliance standards, it is becoming increasingly important for companies to maintain a comprehensive overview of the ESG assessment of their suppliers, as this increasingly serves as a decisive basis for the selection and evaluation of suppliers.

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A systematic calculation can be used to monitor the sustainability of the products or services supplied and ensure that they meet the defined ESG standards. This contributes to the long-term sustainability of the company and protects the company's image.

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To support companies in this important task, Tacto provides a practical template for the ESG score calculation in the form of an Excel file. This template enables companies to carry out the ESG assessment systematically and take all relevant aspects into account. The template is designed so that it can be easily adapted to a company's specific requirements and priorities, and companies can also use Tacto to define their own criteria that they wish to include in their ESG score calculation.

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Our ESG calculation comprises three main categories - environmental, social and governance - which comprehensively assess a supplier's sustainability performance. Each of these categories comprises different aspects that are relevant for the calculation of the ESG score.

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The "Environment" category evaluates the ecological impact of suppliers. The template asks for examples of the existence of environmental certificates and the CO2 compensation of suppliers and calculates an ecological score for each supplier based on this.

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The "Social" category deals with the social aspects and working conditions of suppliers. The template focuses here on the presence of a human rights officer at the suppliers and at the same time classifies the risk of incidents of forced, compulsory or child labor.

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In the "Governance" section, the supplier's corporate governance and ethical practices are assessed. An important criterion here is, for example, the proportion of female managers or the supplier's corruption risk index. The governance index is calculated and provides information on how well the supplier is able to make responsible decisions and uphold ethical business practices.

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The overall ESG score is then calculated based on this information and can be weighted and adjusted differently depending on the focus. The individual scores from different aspects are incorporated into the overall assessment, resulting in a comprehensive picture of the suppliers' sustainability performance. This makes it possible to make informed decisions and continuously improve the sustainability of procurement processes.

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