The problem
Disasters caused an estimated $3 trillion in economic losses from 1998 to 2017, and climate-related and geophysical disasters claimed an estimated 1.3 million lives (more than 90% in low- and middle-income countries). Long after the initial event, disasters often lead to a downturn in the trajectory of socioeconomic development and exacerbate poverty. Greater efforts are needed to prepare for the impact of disasters and to effectively respond when they happen. Corporations can contribute to these efforts in many ways, including through their overall impact on climate change (which affects the frequency and severity of disasters), how they construct buildings and contribute to infrastructure preparedness for disasters, and their charitable giving and volunteerism after disasters
How companies are rated
46K
Ethos is using 46,729 unique data points since 2017 to rate companies, stocks and funds on disaster readiness and effective aid, including from these metrics:
Financial performance
r =
+0.096
Company ratings 1-yr return
Top 10 for disaster readiness and effective aid
Top 50 for disaster readiness and effective aid
S&P 500 Index
Bottom 50 for disaster readiness and effective aid
Bottom 10 for disaster readiness and effective aid
Disaster readiness and effective aid has a slight positive correlation (
+0.096
) with financial returns, meaning companies that perform better in this impact area tend to perform slightly better financially
Data partners and sources
What this formula is about
Disaster readiness
disaster aid
natural disasters
hurricanes
floods
disasters
UN Sustainable Development Goal 11