The model may contain a few lines d

The model may contain a few lines describing what thecategory, or indicator, entails. In this way, the model furtherassists less experienced analysts. Sometimes the analystseven noted what the data source was called in the languageoftheir service provider and thereby facilitated the linking ofaccounts to variables. This way, the models influence whatcategories are used for identifying accounts. These categories, in turn, decide which accounts are captured, whetherby the team directly or through a service provider.As the analysts usually compare companies’ performance,the compared companies’ performance should be calculatedusing the same variables. Generally, there is not one modelper company. Instead, a model is used, and sometimesdesigned, for a group of companies. For example, and asin the example above, companies within a sector would beassessed using the same variables. Despite the practice ofusing the same variables for groups of companies, somerespondents recognised that to capture a company’s ESGperformance effectively, they should perhaps use tailoredvariables that are fitted to the specific company.It’s pretty established that ESG factors are relevant mostlyfor sectors. They are different for different sectors. Theyare even differentfor different companies. That’s anotherstory. I mean obviously, as you said, there is so muchinformation. One problem with investing is that you haveto simplify, but if you simplify too much, then you lose theessence.