Company Eco-Score

Your company Eco-Score is defined by an external certified organization. It is based on two elements on which you can work as a company: Eco-scores of each of your company brands and circular initiatives. More precisely:

                                                                                                                                                        

     (i)                                                             (ii)

1. Eco-scores of each of your company brands: a brand eco-score depends on the physical characteristics of this specific brand (product) manufactured by your company. The better are the circular attributes of a brand (“recyclable materials”, “carbon footprint”, “durability” and “repairability”), the higher this brand eco-score is. More precisely, Brand EcoScores evaluate how much each circular attribute moves away *from the minimum value of the attribute, this minimum evolving with government eco-taxes on attributes (*or from the maximum value, regarding the carbon footprint attribute).

   The global company (firm) Eco-score is formed by the weighted average of the eco-scores of the firm brands, this weight being the number of units sold for the product: the more units of an environmental-friendly product you sell, the higher will be its weight on the company eco-score; in the same way, the more units of a less environmental product you sell, the higher will be its weight on the company eco-score.

2. Circular initiatives: implementing circular initiatives at the company level leads to an increase in the company Eco-score.

   All companies start with similar situations in P0, i.e. an initial FPI of 1000 and an Eco-Score of 200 (leading to an average SPI of 600 for all companies). Starting from P1, the Eco-Score is updated by Brand EcoScores and circular initiatives implemented (see equation above).