Each Site profile in Prewave will be subject to Assessments, which can be self-completed, requested or automated entries. Assessments include:
All Assessments are scored, and that score in turn contributes to the 360 Score of that target. The Assessment Score makes up 20% of the whole 360 Score.
Prewave's "currency" for scoring is our Event Types. Each Assessment contains different questions and answers. We assign relevant Event Types to these, and give each a score.
The final Assessment score is calculated using the quadratic average of the scoring of the groups inside the perspective you are using. This method gives low outliers a significantly higher weight than a simple average would.
Prewave's approach uses the quadratic average because we expect companies to maintain good performance across all areas. A single poor performance (low outlier) substantially increases risk, and this calculation ensures that the final score reflects that elevated risk profile.
In the example below, each of the 5 assessments (Labor & Human Rights, Health & Safety, Business Ethics, Environment and Cyber Security) are scored in one or more of the 3 groups that are part of the Sustainability ESG perspective.
The scoring of the groups (Environmental (65), Social (99) and Governance (81)) are used to calculate the quadratic average and arrive to an Assessment Score of 75.
How are the Scoring of the groups calculated?
The Assessment Scoring System uses Event types (Prewave's scoring currency) to track negative findings. These Event types are organised into higher-level Groups.
When a supplier provides a negative answer to an assessment question, they receive a penalty in the related Event types. This penalty, in turn, reduces the score of the associated Group.
Examples
Environment Questionnaire:
If a supplier answers that they do not have an Environment-related certificate, they are penalised in specific Event types like Environmental Issue, Deforestation, and Pollution.
Since these three Event types belong to a Group (e.g., CSR Incident), the supplier's score for the CSR Incident Group decreases. (Note: Groups can vary depending on the context or perspective).
Maturity Assessment:
A supplier's lack of specific certifications will affect the Event types connected to the Maturity Assessment Category being evaluated. On the table below you can see the Maturity Assessment Categories and the related event types for each:
Maturity Assessment Category | Event type related |
Environment | environmental issue |
Human Rights | human rights violation |
Cyber Risk | data privacy issue |
Health and Safety | health safety |
Energy | emission violation |
Governance | corporate wrongdoing |
For instance, each of the 6 Maturity Assessment scoring entries will only be visible in perspectives that carry its respective event type.
How are the penalties calculated?
Prewave does not measure risk linearly. This is because the impact of risk diminishes: a single, major compliance gap is far more significant to a previously clean supplier than adding one more minor issue to an already high-risk supplier. Therefore, we use a hyperbolic function to calculate the risk score:
Scoring = 100 / (1+0.4*N), where N = total penalty value.
What to do if I have any questions?
Reach out to [email protected].