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ExplanationCompliance and Reporting

How controversy scores are calculated

The four-dimension methodology behind controversy scores — scale, severity, proximity and company response — the formula that combines them, and a worked example.

Every incident found by Real-time Controversies receives a single controversy score from 1.5 to 10 and a four-tier severity label. The score is built from four dimensions, each scored with written reasoning, so you can always see why an incident scored the way it did — not just the number.

The four dimensions​

Scale — how many were harmed​

The breadth of parties materially harmed — people, animals, ecosystems, investors, consumers or market participants — counting only harm traceable to this specific company.

ScoreLabelMeaning
1Negligible / administrativeNo identifiable harmed parties; impact purely procedural or reputational
2ContainedPartial impact at a single, bounded location
3RegionalMultiple sites or communities — broader than one location
4WidespreadCross-border breadth, or harm to the general public at large

Severity — how deep the worst harm was​

The depth of harm for any affected party, regardless of how many were affected. It is scored on the worst harm evidenced — a single irreversible instance is enough for the top score.

ScoreLabelMeaning
1Minor / proceduralNo material harm; purely regulatory, administrative or reputational
2Moderate / recoverableReal but temporary harm; affected parties return to baseline
3Serious / lastingLasting harm that stops short of death or total destruction
4Grave / irreversibleHarm that cannot be undone — a single confirmed instance justifies a 4

Proximity — how directly the company caused it​

Scored for the named company only, not third parties or industry peers. Proximity acts as a multiplier on the score.

LevelMultiplierMeaning
Third-party supply chain×0.75Harm connected through a distant business relationship the company does not control
Direct supply chain×0.875The company's own decisions enable harm through a direct business partner — a supplier, contractor, franchisee or joint venture
Own operations×1.0The company causes harm through its own operations, employees or controlled entities

Company response — how the company reacted​

Only actions by the company itself are evaluated — not regulators, courts or third parties. When several behaviours are present, the least accountable one applies. Response also acts as a multiplier.

ResponseMultiplierMeaning
Active remediation×0.75Goes substantially beyond the specific finding to address root causes — for example auditing other operations or suppliers beyond the one implicated
Acknowledgement×1.0Accepts accountability — apologises, cooperates with investigations, fixes the identified issue
Passive compliance×1.0Does the legal minimum only — pays the fine or withdraws the product, with nothing voluntary beyond it
Unknown×1.0No public response, or only non-committal language with no concrete committed action
Resistance and denial×1.125Openly disputes findings, appeals rulings or defends the practice — without deception
Cover-up×1.25Actively suppresses evidence, deceives, or silences witnesses in response to this specific controversy

The formula​

controversy score = (scale + severity) × proximity multiplier × response multiplier

Scale and severity each contribute 1–4, so the raw sum ranges from 2 to 8. With the multipliers applied, the effective range is 1.5 to 10. The absolute worst score of 10 requires grave, irreversible harm at widespread scale, caused by the company's own operations, together with an active cover-up — a combination that is deliberately rare.

Severity labels​

LabelScore range
Low≤ 3.0
Moderate3.1 – 5.0
Severe5.1 – 7.0
Very severe> 7.0

Every score also carries a confidence rating — low, medium or high — reflecting how well the available evidence supports scoring this specific company across all four dimensions.

Tuned to each of the 24 themes​

A single definition of "grave harm" does not work: a data breach and a chemical spill reach the top of the scale for completely different reasons. Scale and severity are therefore calibrated separately for each of the 24 ESG themes — what counts as "widespread" for a greenwashing incident reflects how broadly the misleading position is embedded in the business, while for a health-and-safety incident it reflects the people harmed. Proximity and company response use the same definitions across all themes.

This is what keeps scores comparable across the whole dataset: a "severe" greenwashing score and a "severe" health-and-safety score each reflect what actually matters in that area.

Scores evolve with the story​

An incident's score is a single running score, not a snapshot. When new coverage arrives — a fine is issued, a class action is filed, the company responds — the incident is re-assessed, and only the dimensions the new information materially changes are revised. Severity and status are tracked over time, so an incident's history shows how the story developed.

A worked example​

The UK Advertising Standards Authority ruled that Volvo Cars misled consumers about the stated range of the EX30 electric vehicle.

DimensionAssessment
ThemeGreenwashing
Scale1 — no identifiable materially harmed parties
Severity1 — no material harm; a communications adjustment was required
ProximityOwn operations (×1.0) — the company's own advertising claims
ResponseAcknowledgement (×1.0) — the ruling was accepted
ConfidenceHigh
(1 + 1) × 1.0 × 1.0 = 2.0 → Low

A real regulatory ruling that still scores Low — because the score reflects the actual harm evidenced, not the drama of the headline.

Common questions​

Why did a big news story score Low? Media attention is not an input to the score. An incident scores on the harm evidenced, how directly the company caused it, and how the company responded. A widely covered story with no material harm scores low; a barely covered story with irreversible harm scores high.

Can the severity bands be adjusted? The underlying dimension scores and formula are fixed, but the banding thresholds can be adjusted per client to match your risk framework.

Where does the reasoning come from? Every dimension score is delivered with a written explanation and the supporting source articles, so you can see the evidence behind each rating — not just the final number.

Does a company's good behaviour elsewhere offset a controversy? No. Each incident is scored on its own evidence. A company's response to that specific controversy is the only conduct that moderates the score.