Why is my aggregated result really high or really low?
Aggregated results for certain metrics may appear unusually high or low due to various factors. Here are potential reasons and examples to help you understand and troubleshoot.
Potential Reasons for High / Low Results
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Metrics with complex inputs
Metrics that require ESG data inputs for the numerator (e.g., energy consumption per high-impact climate sector) and financial data inputs for the denominator (e.g., gross revenue or gross revenue per high-impact climate sector) may produce extreme results when either the numerator or denominator has exceptionally high or low values. This can lead to skewed aggregated results, which may appear unusually high or low.
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Significant investment ownership (relevant only for SFDR PAI aggregations)
A large investment share in one or more portfolio companies with unusually high or low results can skew the overall aggregated result. This occurs because the SFDR aggregation methodology requires weighting based on investment ownership.
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Limited data collection
Insufficient data from portfolio companies can lead to greater fluctuations and increase the likelihood of skewed aggregated results.
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Potential data input errors
Aggregated results that seem questionable (e.g., unusually high or low values) may stem from errors in the data submitted by portfolio companies. Common examples include:
- GHG emissions data: Differences in calculation methodologies across portfolio companies may lead to inconsistent values. A negative result indicates a data input error.
- Gender pay gap data: Errors are common in this calculation. While both positive and negative values are acceptable—positive indicating men earn more than women and negative indicating the reverse—extremely high or low values, regardless of sign, should be reviewed to ensure accuracy.
- Enterprise value data: According to SFDR guidelines, enterprise value must always be positive. If a zero and/or negative value is observed, cash & cash equivalents shall be incorporated to ensure a positive value.
If these explanations don’t clarify the issue, please reach out to our team for assistance by submitting a support ticket.