A crowdsourced sustainability score for investment decisions

The financial sector plays a pivotal role in global sustainability efforts, as its investment activities significantly influence the operations of large multinationals. Consequently, environmental, social, and governance (ESG) investing is increasingly being used to screen investments based on corporate policies and to encourage companies to act responsibly.

The impact corporations have on the global climate is substantial. A study by the Climate Accountability Institute revealed that 20 companies have contributed to 35% of all energy-related carbon dioxide and methane emissions worldwide since 1965.

The Swiss start-up Impaakt supports investors in their decision-making thanks to a crowdsourcing network. Over 250 Impaakt-certified analysts and a peer review platform with approximately 10,000 registered evaluators scrutinise companies to determine whether they meet Impaakt's environmental and governance standards, and are therefore worth investing in. Since its inception in 2018, the platform has accumulated over 1 million collective environmental and social assessments, creating impact scores for more than 5,000 companies. 

On the website, companies such as Microsoft, Nike, and Nestlé are rated by the crowd according to predefined criteria and analysed by several hundred trained specialists. Each brand receives a final sustainability score, which is constantly updated and goes beyond the company’s regular sustainability report. These scores are intended to serve as a basis for decision-making for banks, pension funds and investors.

It is no surprise that such a platform has emerged in Switzerland. Switzerland plays a crucial role in the financial sector, as around a quarter of the world's cross-border assets are managed in Switzerland.  The Geneva-based start-up has recently announced a new financial round of nearly USD 8 millions to expand market reach, forge strategic alliances and accelerate growth.