ESG rating methodology developed by Nawar Alsaadi at Mark Labs.

1. Sustainable Development Solution™ (SDS)
Platform Features & Description
Nawar Alsaadi
Chief Strategy & Product Officer

2. Air emissions , 6%
Revenues from health
products (3 years trend)
, 15%
Revenue % from health
products trend (3 years
trend), 20%
Health & Safety
violations , 5%
Efforts to protect
employees health, 10%
Culture of safety
promotion , 10%
Incident rate , 5%
Fatality rate, 5%
SDG relevancy
(internal), 8%
SDG relevancy
(external), 8%
Health Controversy
(External Sources), 8%
halo effect™
Confidence Factor
Composite Assessment
Confidence Factor
halo effect™
Core Assessment
Universal and Sector based
indicators. SASB weighted. Mark
Labs Enhanced.
(Accessible Raw Date )
Halo Effect recognizes the
interconnected nature of the
SDGs
Confidence Factor adjusts for
disclosure and data availability
17%
Positive Net
Contribution to SDG
3 Health & Well
Being
2

3. Why SASB?
Mark Labs’ SDG impact assessment approach is informed by SASB
SASB’s Materiality approach targets
sustainability metrics that have a direct
impact on enterprise value creation
(Financial Materiality).
The link between sustainability
topics/metrics and enterprise value
creation is likely to increase companies’
responsiveness to ESG engagements.
Material sustainability metrics provide
an opportunity to measure sustainability
impacts in their absolute form (GHG
emissions, water consumption,
governance structure .. Etc.) and/or in
their financial impacts (revenues,
production cost, trading multiple … etc.)
3

4. Financial Materiality
•The cash-flow channel (higher revenues, profitability, and dividends)
•The idiosyncratic risk channel (better risk management, lower tail risk)
Idiosyncratic
•The valuation channel (lower market risk, beta, cost of capital)
Systematic
4
*Guido Giese, Linda-Eling Lee, Dimitris Melas, Zoltán Nagy and Laura Nishikawa
The Journal of Portfolio Management July 2019, 45 (5) 69-83; DOI: https://doi.org/10.3905/jpm.2019.45.5.069
(S) Example: Higher
employee satisfaction
leading to higher
productivity, higher
profitability, higher
dividends. (SDG-8)
(G) (S) Example: Better
supply chain management
leading to lower regulatory
risk, lower fines, and lower
reputational risk. (SDG-8 &
SDG-9)
(E) Example: More efficient
energy management leading
to reduced exposure to
energy prices volatility.
(SDG-7 & SDG-13)
Our sustainability metrics are selected with
the transmission channel impact in mind
ESG impacts on stock prices are transmitted through three
channels* in two broad categories

5. Core Assessment: Universal Indicators
Universal Indicators for each
SDG are selected by an
internal ESG committee
according to their relevancy,
universality and frequency.
Universal Indicators are
largely derived from the
SASB standard, with some
additional indicators
internally by Mark Labs.
Universal Indicators are
applied across all portfolio
companies, with their
weighting adjusted to
reflect Sectoral differences
between companies.
Data for the Universal
Indicators stems from
company filings or Mark
Labs identified external
sources.
For non-SASB filers, Mark Labs
applies it proprietary Shadow
SASB Standard™ to extract
and index relevant SASB
indicator data.
Mark Labs internal ratings screenshot
All raw data is accessible and
verifiable.
5

6. Core Assessment: Sectoral Indicators
Sectoral Indicators are largely selected from SASB’s
sector and industry specific (SICS) indicators.
Sectoral Indicators are applied on company by
company basis, and aggregated at the portfolio level.
Data for Sectoral Indicators can stem from company
filings or can be sourced from external sources.
For non-SASB filers, Mark Labs
applies it proprietary Shadow SASB
Standard™ to extract and index
relevant SASB indicator data.
Mark
Labs
internal
ratings
screenshot
6

7. Core Assessment: SDG Relevancy Factor (SRF)™
Our rating system includes a unique
SDG Relevancy Factor (SRF)™ score.
A company (SRF)™ is informed by both
company disclosed SDG commitments,
and the company external SDG
association.
A company commitment to target SDG
is assessed through Machine Learning
Contextual Data Processing (ML-CDP)™
Web
Source
Official
Source
Media
Article
Reference
Source
Press
Release
Company
Disclosure
Social
Media
Company
SDG
Relevancy
Factor ™
7

8. Core Assessment: Controversy Impact
Portfolio
companies
news are
tracked and
assessed in real-
time
Company SDG
ratings are
impacted by
SDG related
controversies
Controversies
are assessed for
their severity
and historical
occurrence
pattern
Controversy
assessments are
flagged by Mark
Labs’ developed
A.I. and confirmed
by Mark Lab’s
inhouse ESG
analysts.
8

9. halo effect™
The halo effect™ rating feature
recognizes the interconnected
nature of the SDGs.
A halo effect™ impacts a given
company score on a specific SDG by
incorporating that company
associated SDG rating(s) for other
relevant SDGs.
The halo effect™ is applied after the
company SDG rating has been
established for that category.
Example:
Company SDG 3 (Good Health and
Wellbeing) rating is influenced by
the company SDG 6 (Clean Water &
Sanitation) rating as well as its SDG
2 (Zero Hunger) rating.
9

10. Confidence Factor
A Confidence Factor is
applied at the last stage of
the rating process.
A Confidence Factor for a
given company is determined
by data availability and the
company data disclosure
policy.
Lower disclosure = lower
confidence factor
Data Disclosure 1 -
Complete
Data Disclosure 2 - Partial Data Disclosure 3 - Missing
Data Disclosure 4 –
Complete
Data Disclosure 5 –
Questionable
Data Disclosure 1 -
Complete
Data Disclosure 2-
Complete
Data Disclosure 3 -
Complete
Data Disclosure 4 –
Complete
Data Disclosure 5 –
Partial
Company
A
Company
B
Low
Confidence
Factor
High
Confidence
Factor
10

11. Portfolio Features & Ratings
Portfolio is SDG rated in
absolute terms, and in
relative terms
Portfolio is benchmarked to
relevant Index or client
preferred benchmark
Impact Scenarios: test SDG
impact under various
portfolio compositions
Portfolio suggestions to
augment investment SDG
impact (without
compromising financial
metrics)
Track ongoing industry
engagement activity for
equity and fixed income
assets held in portfolio
Potential targets/sectors for
possible sustainability
engagements are
automatically generated and
engagement performance
targets proposed
Easy data and chart export in
Excel and PDF format
Portfolio SDG impact
summary is provided in easy
to read and share format
11
Ratings
Capital
Allocation
Engagement
Reporting

12. External Data Sources*
ShareAction
Xignite
Ceres
Morningstar, Inc.
Benzinga
S&P Global Marketplace
Violation Tracker
CME Group
ASBC
Working Mother
AFP
Speedwell Weather
Human Rights Campaign
OECD
Quandl
Just Capital
ACCR
S&P Dow Jones Indices
TransUnion
Linkedin
Lix-it
Equileap
CDP
GRESB
Accuweather
PTI
B Lab
Experian
Dow Jones
Associated Press
Equifax
Best Credit Data
ASBC
IHS Markit
Exchange Data International (EDI)
Break Free from Plastic
EDGAR Online
Diversity Inc.
Alliance for Nuclear Accountability
UN Global Compact
As You Sow
Lexis Nexus
Global Canopy
Infogroup
SIGWATCH
RavenPack
WWF
World Resources Institute
2 Degrees
Carbon Tracker Initiative
Shareholder Services Inc
CICERO Shades of Green
Climate Bonds Initiative
FAIRR Initiative
Four Twenty Seven
Impact-Cubed
InfluenceMap
Natural Capital Finance Alliance
PatentSight GmbH
Refinitiv
Thomas Schumann Water
UN Environment World Conservation Monitoring Centre.
International Union for the Conservation of Nature.
BirdLife International
Conservation International
Science Based Targets Initiative
Sample
Data
Sources
12
E
S
M
ESG
$
Environmental
Social
Media
Mixed ESG
Economic
ACGA – CG Watch
ICGN
G Governance
*sample - current & potential

13. Leadership Team
Serial entrepreneur with a
background in sustainable
finance, consulting, and law
Background in computer
science, economics, and
social innovation
Experienced tech executive,
1x Founder & 2x CTO, prior
successful exits
Kevin Barrow
Co-Founder & CEO
Galen Lewis
Co-Founder &
Operations
John Nogrady
Chief Technology
Officer
Nawar Alsaadi
Chief Strategy &
Product Officer
Sustainable investment expert.
Corporate engagement
professional, and ESG specialist