Innovating in the field of socially sustainable investing, ESG DAO, a UK-based organisation, has unveiled OpenESG, a revolutionary new scoring system that promises to transform the way Environmental, Social and Governance (ESG) scores are determined. OpenESG is the first open, democratic, and credibly neutral ESG Scoring System that aims to restore trust in the ESG movement.
OpenESG combines multiple datastreams with a diverse and decentralised expert council and data validator networks that are incentivised to measure companies’ real world impact and serve the people and the planet. Their innovative approach also democratises the ESG scoring process by simplifying the methodology and making scores more accessible to a wider range of companies of all sizes.
OpenESG is poised to revolutionise the ESG landscape. The technology is a significant step forward in aligning the interests of businesses with the preferences of most consumers, who prioritise companies that are acting in the world’s best interests.
“OpenESG is a game-changer for the ESG industry, providing consumers and investors with the information they need to make informed decisions about the companies they choose to support. This innovative approach to ESG scoring is a significant step forward in creating a more sustainable and responsible global economy.” says Tee Ganbold, Co-Founder and Executive Chair of ESG DAO.
Building a better ESG rating system
Unlike traditional ESG scoring systems that only measure a company’s risk-mitigation capabilities, OpenESG is designed to provide a comprehensive and transparent assessment of a company’s positive and negative impact on the planet.
The system will merge several legacy and novel data streams to provide a more accurate and holistic view of a company’s ESG performance. The data is curated by a decentralised Expert Council, comprised of diverse perspectives, to ensure that no special interests can dominate the decision-making process. All Expert Council decisions will be made public, promoting transparency and restoring trust in the system.
OpenESG announced it will source diverse public and non-public data sets to get the most comprehensive landscape of relevant ESG metrics for the largest possible pool of companies, partnering with organisations and ratings agencies to get better, more frequently updated data which will be stored in a distributed knowledge graph database. Companies will be able to get their score for free in the first quarter of 2023. If your company would like an OpenESG Score, please sign-up here.
“A transparent, democratic, and credibly neutral ESG scoring system accessible to consumers, academics, businesses, and builders will become the foundation for the emergence of a new wave of apps capable of nudging customer awareness, engagement, purchasing behaviour, and investment decisions towards high scoring companies. This is the basis of a flywheel that privileges good behaviour and translates good corporate karma into better outcomes,” says David Aikman, Co-Founder and CEO of ESG DAO.
“Our goal is to build a system that is truly global and future compatible, using the same standards as current ESG systems, but compiling data in a more efficient way, and in real time, connecting good companies to good people and incentivizing businesses to act in the planet’s best interests.”
The OpenESG Expert Council
As a centrepiece of the OpenESG scoring system, ESG DAO is also announcing its Expert Council, comprised of the world’s leading ESG experts from different stakeholders of the society and diverse regions of the world, who provide the intellectual and ethical guidance to define and maintain a truly independent set of ESG ratings. Council members are nominated from science, academia, sustainability, finance, technology, industry, and civil society to contribute their knowledge and expertise at the global, regional, local, and industry level.
The Council currently has 10 experts but will quickly grow to over 100 co-opted members and beyond, to ensure diversity and plurality of perspectives.
OpenESG is currently recruiting new leaders for the council. The initial members include names such as Adam Werbach, Global Lead of Sustainable Shopping for Amazon; Alvaro Arregui, Managing Partner at MA2; Asher Jay, CEO and Founder at IncOperate; Kuseni Dlamini, Chairman of Massmart Holdings; Lady Mariéme Jamme, Founder at Iamthecode; Oliver Niedermaier, Chairman and CEO of TAU Investments, Reem Khouri, Co-founder at Whyise, E. Benjamin Skinner, founder of Transparentem and, Kristin Rechberger, CEO of Dynamic Planet, John Haffner, Deputy Director at Hang Lung Properties and Sony Kapoor, CEO of The Nordic Institute for Finance, Technology and Sustainability. If you would like to nominate an OpenESG Expert Council member you can do so here.
The founders will be in Davos 2023, hosting a panel about the future of ESG on the 17th of January, with key leaders in the industry such as Leslie Maasdorp, VP and CFO at the New Development Bank, Chris Cleverly, President of Tingo Inc, Lei Lei, Head of Growth and Infrastructure, at NEAR Foundation, Amanda Terry, Co-Founder and Chief Operating Officer of Metagood, and Benjamin Z. Bronfman Founder of Electric Tree. For those interested in participating, reserve a spot in the panel here.
Users can subscribe to receive early access & updates, and companies can submit an application to get a score for their Brand or Product at openesg.com.
About ESG DAO
ESG DAO is building an open, democratic, and credibly neutral ESG scoring system, OpenESG, that will power a new wave of Web2 and Web3 applications that engage consumers and incentivise companies to create positive environmental and social change in the world.