Global Norms Screening Methodology Document

This document is a methodology guide detailing the Global Norms Screening Methodology developed by Clarity AI. The objective of the methodology is to create a transparent and criteria-driven framework for assessing corporate compliance with internationally recognized standards on sustainable business conduct. The methodology evaluates companies based on their involvement in controversial events, determining outcomes such as Violation, Watchlist, or No Violation. It employs a structured three-tier review process that includes automated AI screening, independent expert verification, and formal committee sign-off. The document outlines the analytical framework, rating specifics, data sourcing, and governance related to the methodology. It also discusses the assumptions and limitations inherent in the methodology. The ratings generated are intended to assist financial market participants in their portfolio screening and compliance with EU reporting standards. The methodology is applicable to both private and public entities across international markets, with ratings updated monthly based on new information.