S&P Global BusinessInvolvement Screens
Methodology

ContentsIntroduction

3

Objective

3

Interpretation

3

Research Structure

4

Research Process

4

Research Universe

4

Research Design5

Research Governance5

Quality Control

5Construction

6

Data Normalization

6

Calculating Revenue Exposure Values

6

Calculating Significant Ownership Values

6

Data Standardization & Packaging

6

Maintenance7

Corporate Actions

7

Annual Updates

7

Access8

Data Delivery

8

S&P Capital IQ Pro

8Appendix I

9Example S&P Global Business Involvement Screens

9

Appendix II

10

S&P Global Business Involvement Screens by Category

10

S&P Global Sustainable1 Disclaimer

13To learn more about S&P Global Business Involvement Screens, contact us here.

201Introduction
ObjectiveInterpretation

S&P Global Business Involvement Screens (‘Screens’)measure companies’ direct and indirect exposures to specificproducts and services, quantified as percentages of totalcompany revenue and total company ownership. S&P Global
offers Screens covering thirty-two products and services
that fall into four broad categories. For each of the Screens,
S&P Global provides definitions of the product or service,analyst descriptions of company exposure, the method used
to calculate revenue, revenue ranges, actual revenue
numbers and data source documentation where available.

The Screens are measured on a scale of 0% - 100%,
where 100% represents full revenue exposure to the specificproduct or service. The revenue exposure metric may be
calculated from an exact (disclosed), estimated or a proxyrevenue value. Each company is assessed for direct andindirect exposure to products and services and those metrics
are aggregated at the category level. Direct exposure isquantified as revenue derived from providing the product orservice, while indirect exposure is quantified as ownership ofa company that provides the product or service. Both direct
and indirect revenue exposures are classified into revenue
ranges, which are relative to total company revenue and totalcompany ownership respectively. Direct revenue exposure
ranges include <5%, 5-9.99%, 10-24.99%, 25-50% and >50%.
Indirect revenue exposure (company ownership) ranges
include 10-24.99% and 25-50%. Less than 10% ownership is
not considered significant exposure and more than 50%
ownership is treated as direct exposure. As objective
measurements normalized by revenue and company
ownership, the Screens are comparable across allcompanies regardless of industry.

For more information, view Appendix II - S&P Global BusinessInvolvement Screens by Category.

For more information, view Appendix I - Example S&P Global
Business Involvement Screens.

To learn more about S&P Global Business Involvement Screens, contact us here.

3

02

Research Structure
Research Process

Research Universe

S&P Global Business Involvement Screens are researchedand constructed on an annual basis by a dedicated team ofS&P Global ESG Research analysts. Each company in theresearch universe is assessed upon the release of its
annual report. Screens are built using information
published by companies (e.g., annual reports, company
websites, product descriptions), media and stakeholder
sources (e.g., NGO reports, news articles, government
records) and S&P Global data (e.g., S&P Global CSA data
points, Environmental Analytics, Panjiva Supply ChainIntelligence). S&P Global analysts gather this information
on a company- by-company basis.

+17,000 companies are evaluated by S&P Global on theirrevenue and company ownership exposures to construct theS&P Global Business Involvement Screens. This researchuniverse comprises companies that are part of core S&P Dow
Jones Indices, including:Once relevant data is compiled, it undergoes extensive
review and multiple phases of quality control to ensure its
validity and accuracy, including the evaluation of the data
relative to historical values and industry peers.
In addition to the annual assessment cycle, companies arecontinually monitored by S&P Global for significant
corporate actions, media reports or activities that might
impact the information captured in the Screens.

• S&P 500
• S&P 1200
• S&P Global Large Mid• S&P 400 Mid Cap• S&P 600 Small Cap• BSE 100
• S&P/NZX 50• S&P/ASX 300• Dow Jones Sustainability World Diversified Index• TOPIX• S&P China 500• S&P Global Clean Energy Index
S&P Global continually monitors the constituents thatcompose these indices and adds additional coverage ascompanies join these benchmarks. In addition, S&P Global will
add coverage for the Screens per client interest and request.
For more information view – S&P Global ESG Research
Universes (Requires S&P Capital IQ Pro subscription).

To learn more about S&P Global Business Involvement Screens, contact us here.

4Research Structure

Research Design

Research Governance

The Screens are built from six distinct components, allavailable to clients, to provide a comprehensive evaluationof company exposure to products & services:

The team at S&P Global Sustainable1 that is responsible formanaging the Screens includes multidisciplinary analysts
with industry-specific responsibilities and expertise. This
team is responsible for the entire process from the annual
assessment and quality control to developing new Screensand expanding coverage.

1.

Revenue Exposure: Numerical metrics of both theamount and the corresponding percentage of total
revenue exposed to a product or service.

2.

Analytical Description: Text description of the specificbusiness segments in which a product or service wasfound and how the revenue exposure was calculated.

3.

Revenue Range: Numerical range segmented into five
thresholds, relative to total revenue, reflecting direct
exposure to a product or service.
• Less than 5% of the company’s revenues
are derived from the involvement activity.
• 5-9.99% of the company’s revenues

The S&P Global Business Involvement Screens Council(‘Council) is the governing body for all methodology changes
to the Screens. The Council comprises appointed S&P Global
ESG Research team members, including the Head of ESG
Research Solutions at S&P Global Sustainable1. The Head ofESG Research at S&P Global Sustainable1 chairs the Council.
The Council is responsible for reviewing and validating major
proposed changes to company involvement data, such asa large increase or decrease in revenue exposure, an addition
or deletion of types of involvement or a significant change
in data availability.

• are derived from the involvement activity.
• 10-24.99% of the company’s revenues
are derived from the involvement activity.

Quality Control• 25-50% of the company’s revenues• are derived from the involvement activity.
• More than 50% of the company’s revenues
are derived from the involvement activity.
4.

Significant Ownership (Percentage): Numerical metricof the percentage of total ownership of a company withdirect exposure to a product or service. Companies thatown between 10-50% of a company with direct exposure
to a product or service are considered to have significant
ownership. Companies with more than 50% ownershipare considered to have direct exposure. The significant
ownership percentage is calculated relative to all shares
held by the owner.

5.

Significant Ownership Range: Numerical range
segmented into two thresholds, relative to total
ownership (shares held) of a company with direct
revenue exposure to a product or service.

Data collected for the Screens is subjected to extensive
review and multiple phases of quality control to ensure theirvalidity and accuracy. Reviews are performed by speciallytrained and experienced analysts, using pre-defined andrules-based verification frameworks. Verification includes
crosschecking documentation with S&P Global CSA data
points and Environmental Analytics, evaluating media &stakeholder reports and reviewing• 10 to 24.99% of ownership• 25 to 50% of ownership
6.

Evidencing: Text taken directly from the information
source that describes company exposure to a product orservice. When accessing Screens through the S&P
Capital IQ Pro platform, clients may navigate to source
documentation via hyperlinks.

To learn more about S&P Global Business Involvement Screens, contact us here.

503Construction
Data NormalizationCalculating Significant Ownership Values

The Screens use revenue as a normalization factor tomeasure direct exposure and shares held as a normalization
factor to measure indirect (ownership) exposure.

To calculate significant ownership values of companies withexposure to products and services covered by the Screens,
S&P Global utilizes its proprietary in-depth research on
ownership structures to ensure the highest data quality
standards. This ownership structure data is available
separately on the S&P Capital IQ Pro platform.

Calculating Revenue Exposure Values
The revenue exposure values for the Screens may be exact(disclosed), estimated or proxy values and are calculated indifferent ways:
1.

Exact (Disclosed) Revenue Exposure: When a company
publicly discloses revenue derived from involvement in a
specific product or service covered in the Screens,
analysts use this value (after running it throughverification and quality control processes).

2.

Estimated Revenue Exposure: When a company does
not publicly disclose revenue derived from involvement
in a specific product or service covered in the Screens,
analysts calculate an estimated revenue value. This isdone by using any existing disclosed revenue data andthe number of total business segments within acompany.

3.

Proxy Revenue Exposure: When a company does not
publicly disclose revenue derived from involvement in a
specific product or service covered in the Screens, and it
is not possible to estimate revenue exposure, analysts
will utilize a proxy metric for minimum involvement
based on the company’s business operations.

Data Standardization & Packaging
Once revenue and significant ownership data has beencollected, normalized and verified, S&P Global provides
definitions of the product or service, analyst descriptions ofcompany exposure, the method used to calculate revenue,
revenue ranges, actual revenue numbers and data source
documentation in a standardized format – packaged as S&P
Global Business Involvement Screens.

To learn more about S&P Global Business Involvement Screens, contact us here.

6

04

MaintenanceCorporate Actions
Companies are evaluated for revenue exposure andsignificant ownership at the issuer level. If a company
acquires another company or is spun-off from a parent,
the Screens will be re-calculated to reflect the new revenueexposure and significant ownership values. Corporate
actions are reviewed and processed on a monthly basis.

Annual Updates
The Screens methodology is reviewed and adjusted on anannual basis to reflect comprehensive coverage of relevant
products and services, developments in industry classifications
and increased sophistication of the research process and design.

To learn more about S&P Global Business Involvement Screens, contact us here.

705

AccessData Delivery
The S&P Global Business Involvement Screens data set isavailable via a number of flexible data delivery options, withintra-day delivery through cloud or feed solutions offered on thefollowing platforms: ClariFI, FTP, Snowflake and Xpressfeed.
Data on Xpressfeed can be queried and exported in a format
compatible with Tableau, and data on ClariFI can be put in text
files and internal databases for use in Tableau and Alteryx.
For more information, review the data delivery options.

S&P Capital IQ Pro
The S&P Global Business Involvement Screens data set isavailable on the S&P Capital IQ Pro platform and can beexported into a range of formats, including Microsoft Office
Platforms and PDFs. Clients may access revenue values in80+ currencies on the platform.
For more information, review the S&P Capital IQ Pro platform.

To learn more about S&P Global Business Involvement Screens, contact us here.

8

06

Appendix I
Example S&P Global Business Involvement Screens
The following example demonstrates a snapshot of the S&P Global Business Involvement Screens for a fictitious energycompany, specifically looking at three products & services that fall into the ‘Energy and Fossil Fuels’ category.

Energy & Fossil Fuels% of Total
RevenueRevenue Exposed($M)

Total Revenue($M)

Highest % ofOwnership

Ownership
Involvement

35.7 %

41, 721.81

116,867.81

15%

1 of 13 screens

Involvement
Type

Revenue($M)

Revenue
Exposed/Total
Revenue (%)

Revenue
Range

Ownership
Involvement(%)

Ownership
Range

Arctic Drilling

12,271.12

10.5

10-24.99%--

Extraction and/or
Production

12,271.12

10.5

10-24.99%--

Nuclear---15

10 to 24.99%

Generation-----

Supporting
Products andServices-----

Transmission &Distribution

---

15

10 to 24.99%

Shale Oil and Gas

29,450.68

25.2

25-50%--

Extraction and/orProduction

29,450.68

25.2

25-50%--To learn more about S&P Global Business Involvement Screens, contact us here.

907

Appendix II
S&P Global Business Involvement Screens by Category

Consumer Products & Services
Adult Entertainment

Production
Retail and Distribution
Production

Alcohol

Related Products and Services
Retail and Distribution
Wholesale (Medical)

Cannabis

Wholesale (Recreational)
Retail (Medical)
Retail (Recreational)

Fur and Specialty Leather

Production
Retail and Distribution
Operations

Gambling

Specialized Equipment
Supporting Products and Services

Genetically Modified Organisms
Palm Oil
Pesticides
Predatory Lending

Development
GrowthGrowers
Processors and Traders
Production
RetailOperations
Production

Tobacco

Related Products and Services
Retail and Distribution

To learn more about S&P Global Business Involvement Screens, contact us here.

10Appendix II

Defense & Weapons
Anti-Personnel Mines
Biological and Chemical Weapons
Blinding Laser Weapons
Cluster Munitions
Depleted Uranium
Incendiary Weapons

Customized Weapons
Related Products and Services
Customized Weapons
Related Products and Services
Customized Weapons
Related Products and Services
Customized Weapons
Related Products and Services
Customized Weapons
Related Products and Services
Customized Weapons
Related Products and Services
Integral Military Weapons

Military Contracting

Non-weapons
Weapon Related

Nuclear Weapons
Private Prisons
Riot Control

Customized Weapons
Related Products and Services
Operations
Supporting Products and Services
Offerings
Weapons
Production of Key Components

Small Arms

Production of Small Arms Weapons for Civilian Use
Production of Small Arms Weapons for Non-civilian Use
Retail and Distribution of Small Arms Weapons

Energy & Fossil Fuels
Arctic Drilling

Extraction and/or Production
Manufacturing Coal Products

Coal

Metallurgical Coal Mining
Thermal Coal Mining
Power Plants

Coal Expansion

MiningInfrastructure

To learn more about S&P Global Business Involvement Screens, contact us here.

11Appendix II

Generation
NuclearSupporting Products and Services
Transmission and Distribution

Oil Sands or Tar Sands

Extraction and/or Production

Shale Oil and Gas

Extraction and/or Production
Generation

Thermal Coal

Supporting Products and Services
Transmission and Distribution

Ultra Deep Sea Drilling

Extraction and/or Production

Healthcare
Operations
Abortion

Production
Supporting Products and Services
Operations

Contraception

Production
Retail and Distribution
Cryopreservation of Human Embryos

Stem Cells

Technologies and Products
Use of Stem Cells in Research and Development
Use of Stem Cells in Therapy Development

To learn more about S&P Global Business Involvement Screens, contact us here.

12

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