European Social Data Methodology
1 - Universe
The analysis focuses on listed companies in Europe, large caps with more than 1,000 employees. The starting universe is the Stoxx 600. At least 95% of the index’s market capitalization is covered, i.e. 570 companie. The period analysed runs from 31/12/2019 to 31/12/2022.
Number of companies analysed
Stoxx 600 companies
2 - Data collection
In order to obtain the most reliable and usable information possible, Humpact collects and integrates data from different sources.
Annual & sustainability reports
Various online sources
3 - Humpact Score
The Humpact Score is based on the Best-in-Universe approach: all companies are compared with each other, regardless of their sector, and are given a performance score out of 100. The score is then translated into a simplified rating from 1 to 5 stars.
To date, 40 annual quantitative indicators have been constructed from the data collected and 70 qualitative criteria identified. They are successively grouped by category and by weighting group.
According to the rule of equal weighting of groups and categories within groups, the calculation coefficients are the following:
4 - Types of indicators
The main method of awarding points is by percentile ranking. For each indicator, companies are given a value between 0 and 1 (its percentile rank) reflecting its position relative to other companies (1 being the highest ranked company among all companies):
The qualitative indicators correspond to the evaluation of the social policies of the companies according to the following 6 indicators:
- Occupational risk prevention, occupational health and safety management and well-being
- Training and skills development
- Promotion of gender equality in the workplace
- Professional inclusion of people with disabilities
- Inclusion of young people, apprenticeship
- Diversity, anti-discrimination and integration of people excluded from the labour market
For each social policy, Humpact has determined between 5 and 10 actions that companies can implement. Each action is identified in the universal registration documents or after interviews with the companies. Each social policy category is scored out of 10.
5 - Additional restatements
Mergers, acquisitions & disposals
The Humpact score measures the net job creation by companies. Changes in the number of employees due to acquisitions, disposals or mergers are not taken into account.
To do this, Humpact analysts reprocess the data of companies that have carried out these operations to neutralise their impact on the score. The corrective information comes from universal registration documents, specialised websites and surveys sent directly to companies.
Controversies & redundancy plans
Humpact monitors social controversies and redundancy plans. Humpact distinguishes the two terms according to the following definitions:
- Redundancy plan: An action plan to dismiss employees announced by the management of a company.
- Social controversy: alert on a social issue except from redundancy plans.
Example: strike, harassment etc…
Redundancy plans are assessed according to the following criteria:
- level of progress of the plan
- social context
- time-frame of the plan
- dialogue with trade unions
- level of effort and importance of human capital for society
Controversies are assessed on a case-by-case basis by the analyst and are distinguished according to 2 levels: