Our ESG scoring system is a comprehensive tool designed to evaluate a supplier's performance across key Environmental, Social, and Governance (ESG) factors, helping businesses assess sustainability and ethical practices within their supply chain. The total score is out of 1000 points, distributed equally across four categories: General (250 points), Environmental (250 points), Social (250 points), and Governance (250 points). ESG Score Breakdown 1. General (250 points) This category focuses on the supplier’s transparency, certifications, and overall reputation. Transparency & Reporting: Measures the supplier’s public disclosures, such as sustainability reports and governance practices. Certifications & Standards: Evaluates compliance with international standards and certifications like ISO or the UN Global Compact. Reputation: Assesses public sentiment and media coverage of the supplier. 2. Environmental (250 points) This category evaluates the supplier’s environmental performance, focusing on carbon footprint, resource management, and environmental compliance. Carbon Footprint & Emissions: Measures carbon emissions, renewable energy use, and carbon reduction efforts. Resource Management: Evaluates the supplier’s water and energy efficiency, waste management, and sustainable sourcing practices. Environmental Compliance: Verifies compliance with environmental laws, tracking violations and fines. 3. Social (250 points) This category assesses the supplier’s social responsibility, focusing on labor practices, diversity, equity, inclusion (DEI), and human rights. Labor Practices: Evaluates conditions such as wages, labor standards, and employee rights. Diversity, Equity & Inclusion (DEI): Measures the supplier’s DEI policies and practices, including the representation of minority groups. Human Rights & Modern Slavery: Ensures compliance with human rights laws and evaluates risks related to modern slavery. 4. Governance (250 points) This category evaluates the supplier’s governance structure, adherence to anti-corruption policies, and compliance with legal standards. Corporate Governance: Measures the strength of the supplier’s governance structure, including board diversity, executive compensation transparency, and independence. PEP & Sanction Screening: Screens for Politically Exposed Persons (PEPs) and entities under international sanctions. Anti-Corruption & Ethical Policies: Assesses adherence to anti-corruption laws and the existence of ethics policies such as whistleblower protections. How the Scoring Works The ESG score is calculated by assessing each of these categories and adding up the points. The score for each subcategory is based on the performance of the supplier as determined by the data sources (e.g., supplier reports, third-party ESG databases, media coverage). The total points in each category contribute to the overall ESG score, with the higher the points, the better the supplier’s ESG performance. ​ The scores provide a clear and measurable way to compare suppliers based on their ESG performance, helping businesses make informed decisions when selecting and managing their suppliers. The transparency of the scoring system allows for easy identification of strengths and areas for improvement within a supplier’s sustainability and ethical practices.

ESG AI is designed to support businesses navigating the complexities of today’s rapidly changing marketplace by leveraging advanced AI and ESG-driven insights. Here’s how our solution can help: Enhanced Decision-Making Through ESG Insights ESG AI provides businesses with powerful tools to evaluate and track environmental, social, and governance (ESG) data on suppliers, competitors, and industry trends. By synthesizing this data, our platform offers actionable insights that help businesses stay compliant, make sustainable decisions, and adapt to evolving regulatory and market demands. Risk Identification and Mitigation Our AI platform scans multiple data sources—including regulatory filings, industry news, financial reports, and social sentiment—providing a comprehensive risk assessment on various suppliers and partners. For businesses facing uncertainty, understanding potential risks, such as reputational, compliance, or financial risks, allows them to make proactive choices and avoid costly setbacks. Cost Efficiency and Improved Operations Through real-time data scraping and analysis, ESG AI helps businesses identify inefficiencies in their supply chain and operational processes. For example, by comparing suppliers on ESG criteria, companies can discover cost-effective, sustainable alternatives that align with their values, helping reduce expenses while improving brand loyalty and operational resilience. Agility in a Competitive Market Businesses struggling to differentiate themselves can use ESG AI to highlight unique value propositions around sustainability. By using our AI-driven insights, companies can create marketing and stakeholder engagement strategies that showcase their commitment to ESG principles, helping them stand out in competitive landscapes. Future-Proofing Through Adaptation Our platform helps businesses look ahead by integrating industry and global trends into their strategic planning. ESG AI’s ability to adapt and incorporate new ESG standards and data sources ensures that companies remain resilient, responsive to industry shifts, and prepared for future challenges in an unpredictable marketplace. In a world where businesses are increasingly judged on their impact and transparency, ESG AI is a valuable partner for those looking to succeed sustainably and responsibly, even in challenging times.

Our solution provides businesses across industries with the tools they need to deepen their understanding of ESG, enhance reporting capabilities, and proactively identify risks in their supply chains. Leveraging an AI-powered data-gathering and analysis engines, our platform draws insights from a wide range of publicly available data, including supplier websites, company policies, news articles, and financial records. The AI engine analyzes this data using machine learning models, transforming complex, unstructured information into organized insights that are essential for ESG assessment and reporting. ​ Our staged approach to data collection, data management and data assessments allows businesses to start their ESG journey with clear, actionable insights and measurable progress. As the tool evolves, it delivers an increasingly comprehensive view of ESG performance across multiple categories. ​ How Our Solution Adds Value Across Markets: Enhanced ESG Reporting: By structuring data into easily accessible formats, and automating the data extraction process, our platform simplifies ESG reporting for companies of any size. Businesses can provide their stakeholders with transparent, data-backed insights into their environmental, social, and governance efforts. In-Depth Supplier Risk Assessment: The platform’s AI scrapes and analyzes data on critical supplier factors, from environmental and social policies to certifications, financial stability, and supply chain practices. This level of analysis allows businesses to identify and mitigate risks within their supply chains, promoting responsible sourcing and greater resilience. Comprehensive Data Collection and Structuring: Our tool captures detailed information on suppliers, including business structure, market position, policies, certifications, and social impact initiatives, and structures this information efficiently for integration into the AI Supplier Assessment Engine. This ensures that businesses gain a well-rounded understanding of supplier profiles, helping them make informed ESG-aligned sourcing decisions. Future Integration with Financial Systems: With long-term goals to integrate with financial platforms like Xero, NetSuite, Sage, and QuickBooks, our solution will cross-reference ESG insights with financial data to provide an even more comprehensive view of both your business' and suppliers' performance. This integration will enable businesses to evaluate ESG risks alongside financial and operational data, offering a thorough assessment that balances sustainability with financial viability. Our ESG Artificial Intelligence solution empowers businesses to stay ahead of regulatory requirements, demonstrate ESG leadership to stakeholders, and strengthen supply chains by identifying new risks. This comprehensive approach enables businesses to integrate ESG considerations seamlessly into their operations, driving both sustainability and success.

Our solution integrates a wide array of data sources to offer a comprehensive, AI-driven evaluation of suppliers based on Environmental, Social, and Governance (ESG) criteria. By leveraging these sources, we empower businesses to identify risks, enhance reporting, and advance their ESG performance goals effectively. Key Data Sources To ensure a holistic supplier assessment, we incorporate diverse data sources that provide critical insights across ESG dimensions: We check for Politically Exposed Persons (PEP) screening and sanctions compliance, ensuring suppliers meet regulatory standards and mitigate associated risks. We check the Global Slavery Index: Provides critical data on modern slavery risks, aiding in the assessment of human rights practices across the supply chain. We review carbon emissions disclosure: Delivers insights on carbon emissions, sustainability initiatives, and climate-related disclosures, enabling an accurate evaluation of environmental practices. We conduct social Media Monitoring Tools: Monitors online sentiment and reputation, offering real-time insights into supplier reputation and public perception. We review labour risks: Providing essential information on labor standards and compliance, helping to assess social responsibility and fair labor practices. Data Retrieval Methods To bring together this wealth of information, we employ tailored data retrieval methods suited to each source’s structure and access requirements: APIs: We use APIs for platforms to allow real-time and automated data access, streamlining integration into the assessment engine and enabling up-to-date supplier evaluations. For publicly available information lacking APIs, our solution employs compliant web scraping techniques to gather data from websites, regulatory filings, and supplier resources. These scripts extract relevant data while adhering to site terms of service. Data Entry: For sources offering static reports without automated access, we implement a systematic data entry process to ensure accuracy. Regular updates and verification maintain the relevance of this information. Centralised Data Storage and Scoring The collected data is stored in a centralized database optimized for query efficiency and analysis. Each supplier’s profile captures structured ESG data points, such as transparency ratings, emissions scores, labor practices, and governance details. By normalizing and weighting the data appropriately, we enable fair, standardised ESG scoring that aligns with the scoring methodology outlined in our ESG Score Breakdown. Risk Management and Reporting Our solution consolidates the results into comprehensive reports, which feature total ESG scores, category breakdowns, and identified risks. Designed for user-friendly navigation, these reports include comparative analyses against industry benchmarks, allowing stakeholders to gauge supplier performance within their industry context. With clear visualizations and actionable recommendations, these reports empower decision-makers to select responsible suppliers, implement effective risk management, and advance organizational sustainability objectives. Through this multifaceted approach, our solution enhances businesses’ understanding of ESG, streamlines reporting processes, and provides a robust foundation for managing risks across the supply chain, fostering resilience and sustainability across industries.

ESG AI customizes its services for niche or small companies by providing tailored solutions that align with their unique needs, resources, and market conditions. Here’s how we adapt our platform to support smaller or specialized businesses: Scalable Solutions for Limited Resources For small businesses with limited resources, ESG AI offers scalable services that allow companies to start with basic features and grow as their needs evolve. Our platform is flexible, so companies can begin by assessing key ESG metrics relevant to their operations, such as environmental impact or supplier compliance, and gradually expand to more complex reporting and risk management tools as they scale. Industry-Specific ESG Metrics Niche businesses often have unique ESG considerations. ESG AI customizes the assessment engine to focus on the most relevant ESG factors for specific industries. Whether it’s small-scale manufacturers, service providers, or niche retailers, ESG AI adapts the data sources and evaluation criteria to fit the particular challenges and risks of each business, ensuring they can make informed decisions based on their market and operational context. Tailored ESG Implementation Plans Smaller companies may not have the same in-house ESG expertise as larger firms. ESG AI helps by developing customized ESG implementation plans, taking into account the company's size, market, and capacity. This ensures that ESG initiatives are manageable, aligned with business objectives, and realistic given the company's existing processes and budget. Automated Data Collection and Reporting Small businesses often lack the resources to dedicate to time-consuming ESG data collection and reporting. ESG AI’s automated tools for data scraping and analysis simplify this process, allowing niche companies to efficiently gather relevant ESG data from various sources. This reduces the administrative burden and helps businesses produce accurate and timely reports for stakeholders without additional overhead. Cost-Effective Subscription Plans To accommodate smaller budgets, ESG AI offers cost-effective subscription models tailored to the needs of small businesses. These plans allow companies to access critical ESG tools without incurring the high costs typically associated with comprehensive ESG programs, enabling them to remain competitive while adhering to sustainability standards. Real-Time Alerts and Risk Monitoring ESG AI’s real-time monitoring tools allow small companies to keep track of risks in their supply chain or business operations without needing a dedicated team for risk management. Customizable alerts notify businesses when new risks or ESG issues arise, enabling proactive mitigation and informed decision-making. Simplified ESG Reporting Reporting on ESG performance can be complex, especially for small businesses with limited expertise in the field. ESG AI simplifies the process by providing easy-to-understand dashboards and templates for generating comprehensive ESG reports that meet regulatory requirements or satisfy customer demands. This helps businesses communicate their ESG efforts clearly and professionally, enhancing their reputation. Support for Competitive Positioning For niche companies trying to differentiate themselves, ESG AI helps identify areas where they can outperform competitors on ESG metrics. The platform’s insights enable small businesses to position themselves as leaders in sustainability within their niche market, attracting like-minded customers and investors. By tailoring our platform’s features, reporting tools, and implementation strategies to fit the unique needs of niche and small businesses, ESG AI empowers these companies to manage ESG risks, improve sustainability, and enhance their market competitiveness—without overwhelming their resources.