GIF Metric
Hence, the GIF Metric is the third component of the GIF Framework.
“Risk” significantly means “effect of uncertainty on objectives”. A risk is “a combination of the consequences of an event and the associated likelihood of occurrence” (ISO 31000).
Risk = likelihood x consequence
Unlike a traditional “compliance-non-compliance” binary metric, the GIF Metric adopts a quantitative approach typical of risk assessment. In other words, the GIF Metric does not follow traditional single choice (Yes/No/NA). Rather it adopts a scoring oriented methodology aiming to represent the exposure level to risks in each Area.

“Area” scoring
For the purpose of the overall risk evaluation, the metric firstly requires the calculation of the “Score per area”. Basically, the score takes into consideration the assessment points of the Framework. In detail, the scoring scale is a multiple of 5 within a range from 0 to 100.
Hence the GIF Metric follows this logic:
- Governance and Management System Area: “the higher the score, the better the Governance and Management System prevent ESG risks and then, the lower the risk”.
- Risk-oriented Areas: “the higher the score, the lower the risk exposure level”.
Grade | Criterion “Governance & Management System” | Criteria Social /Safety/ Environment/Business Ethics |
---|---|---|
80-100 |
Very Good
|
Very Low
|
60-75 |
Good
|
Low
|
40-55 |
Acceptable
|
Acceptable
|
20-35 |
Poor
|
High
|
0-15 |
Very Poor
|
Very high
|
“Topic’s scoring”
Secondly, the metric consists of the calculation of the “Score per topic”. For this purpose this score is the average of the scores assigned to those areas included in the Topic.
“Criterion’s scoring”
Thirdly, the score per Criterion (Governance and Management System, Social, Safety, Environment and Business Ethics) is the average of the scores assigned to each Topic of the Criterion.
“Overall” scoring

In conclusion, the Overall Score is the average of the scores per Aspect and represents the total exposure level of the Organization to ESG risks.
The overall Score reflects both the extent to which the Organization implements the social responsibility management system and the actual or potential exposure level to ESG risks that can result into present or future adverse impacts.
In brief, the GIF hyerarchy of ESG risk exposure consists of 5 grades. The lowest score corresponds to a very high exposure level, while the highest score corresponds to a very low exposure level.
Rating | Risk Level | Description |
---|---|---|
80-100 |
Very Low |
Organization exposed to very low ESG risks and capable of managing and monitoring them without exposing Stakeholders to unexpected costs or other adverse impacts. No specific risk oriented actions are needed but improvement actions will be beneficial. |
60-79 |
Low |
Organization exposed to low ESG risks and capable to manage them without exposing the Stakeholders to the most relevant unexpected costs and adverse impacts. Few risk reduction oriented actions are needed and there are few areas for improvement. |
40-59 |
Acceptable |
Organization exposed to acceptable ESG risks of adverse impacts in every “core area”. Few risk reduction oriented actions are needed and there are areas for improvement. |
20-39 |
High |
Organization exposed to high ESG risks related to one or more “core areas” that can result into high costs or adverse impacts on the Stakeholders. Robust improvement and risk reduction oriented actions must be planned and implemented to reduce the risk exposure level. |
0-19 |
Very High |
Organization exposed to very high ESG risks in “core” and “non-core” areas. A governance and management system for social responsibility review is required. Robust improvement and risk reduction oriented actions are needed. |
Thresholds to pass Due Diligence
All things considered an organization positively pass the Due Diligence if the following criteria are met:
- minimum overall score = 40
- minimium score per “Governance & Management System” = 40
- minimum score per “core area” = 40
On one hand the minimum score means the alignment wih the OECD Guidance for Due Diligence.
On the positive side the GIF Metric assigns the highest score to Organizations with “very low risks” in every area.
Therefore the highest score represents the alignment with both OECD Guidance and ISO 2600 recommendations.