Methodology

ResilienceArc makes use of Corporate Knights’ (CK) Sustainable Economy Intelligence (SEI) dataset within the Implementation metric. The CK SEI provides sustainable capital expenditure, research & development (R&D), acquisitions, and revenue absolute dollar amounts as well as overall investment and revenue ratios. 

The CK SEI tracks any sustainable investment or revenue disclosed by companies against the Corporate Knights Sustainable Economy Taxonomy. This taxonomy is developed and maintained by Corporate Knights and is closely aligned with other leading taxonomies.

For the purposes of ResilienceArc, LSE EarthCap has mapped a subset of the Sustainable Economy Taxonomy against resilience-related categories. For investment, taxonomy elements are mapped against nature-based solutions and adaptation solutions. For revenue, taxonomy elements are mapped against nature-based solutions and activities enabling adaptation. These categories are benchmarked (by thresholds determined by LSE EarthCap in the development of ResilienceArc) as leaf node indicators within the Capital allocation (investment) and Products and offering (revenue) sub-metrics. Taxonomies for adaptation and resilience are evolving and this area of the ResilienceArc methodology will be further refined, including with additional consultation of key partners, in future.

In addition, ResilienceArc uses the “Red Flag” component of the CK SEI dataset, which provides tracking of companies involved in ethically or environmentally questionable industries and/or practices. The red flags are used within a leaf node indicator in the Products and offering sub-metric of the Implementation metric. The number of areas in which a company has been flagged as doing significant harm to society and/or nature is counted and a company only achieves a “resilience-aligned” score in the indicator if the final count is zero. The categories against which companies’ records of doing significant harm to society and nature are tracked are:

• Access to medicine laggards
• Access to nutrition laggards
• Adult entertainment
• Blocking climate policy
• Blocking climate resolutions
• Cement carbon laggards
• Civilian firearms
• Controversial weapons
• Conventional weapons
• Deforestation & palm oil laggards
• Energy
• Farm animal welfare laggards
• Forced labour and genocide
• For-profit prisons
• Fossil fuel financing
• Gambling
• Government sanctions
• Gross corruption violations
• Harmful pesticides
• Monetary sanctions
• Oil sands laggards
• Severe environmental damage
• Severe human rights violations
• Thermal coal
• Tobacco

At beta launch in June 2026, the percentage of investment and revenue within the categories of nature-based solutions, and activities enabling adaptation are visible on the platform. Shortly following launch, the absolute dollar amounts of investment and revenue in the granular taxonomy tiers from which the categories, nature-based solutions and activities enabling adaptation are aggregated, will be available. For red flags, users can see each category tracked in the CK SEI and whether the company has been flagged in each area.