Country Governance Effectiveness Index
TDi’s Country Governance Effectiveness Index for Responsible Sourcing draws on established indices for country-level governance from a range of international organisations. It focuses on those aspects of governance that are most relevant for companies seeking to source responsibly from each country, and indicates how effective a country’s governance environment is for supporting this goal.
The darker green a country appears, the better its score on the Country Governance Effectiveness Index for Responsible Sourcing. Hover above any area of the map to see the name of the country and its exact value on the index.
The countries that are completely white lack a value for at least one of the underlying indices.
Low Governance Effectiveness -> High Governance Effectiveness
The darker green a country appears, the better its score on the Country Governance Effectiveness Index for Responsible Sourcing. Hover above any area of the map to see the name of the country and its exact value on the index.
The countries that are completely white lack a value for at least one of the underlying indices.
How Do We Calculate This Index
We separate out our underlying indices into four categories, each of which has equal weighting: Conflict; Law; Human Rights; and Environment. Each category comprises four indices, except for the environment category. The only sufficiently global environmental index currently available is the Environmental Performance Index, developed by Yale University, so this index contributes the entire weight for the Environment category of the TDi Country Governance Effectiveness Index for Responsible Sourcing.
Each of the indices we include is regularly reviewed for suitability, and the TDi Country Governance Effectiveness Index for Responsible Sourcing is refined and updated at least bi-annually. The index was last updated in March 2019.
The Country Governance Effectiveness Index for Responsible Sourcing combines its underlying indices using the geometric mean, which is a more specialist mathematical tool than the common arithmetic mean. Using the geometric mean causes countries with moderate governance weakness in every area to be rated worse than countries with a mix of governance strengths and more pronounced governance weakness. Averaging in this way reflects the reality of responsible sourcing, in which the greatest risk is presented by systemic weakness across all aspects of governance.