Methodology

1. Overview

SOSCO is a sustainability compliance intelligence platform. It helps companies understand their exposure to EU sustainability regulations by providing structured risk assessments, regulatory guidance, and AI-assisted compliance support.

This page explains how SOSCO evaluates regulatory risk, what data sources it relies on, how AI is used, and what limitations apply.

2. Regulatory Frameworks

SOSCO currently assesses company exposure across three EU regulatory frameworks:

3. Risk Assessment Approach

For each supported framework, SOSCO generates a risk level based on company and product characteristics provided during onboarding and through ongoing product context updates.

Risk Levels

Input Factors

Risk assessments consider the following company and product attributes:

• Company size (employee count, revenue thresholds)
• Industry sector and sub-sector classification
• Markets served (EU vs non-EU presence)
• Product categories and materials
• Supply chain characteristics
• Existing sustainability reporting maturity

4. Role of AI

SOSCO uses AI (powered by Anthropic Claude) in the following areas:

• Regulatory Chat: answers user questions about sustainability regulations using a curated knowledge base of EU regulatory documents.
• Compliance Assessment: assists in evaluating company and product exposure to supported frameworks based on structured inputs.
• Regulation Matching: identifies potentially relevant regulations based on company profile and product context.

5. Regulatory Data Sources

SOSCO's regulatory knowledge base draws from publicly available EU legislative and guidance materials, including:

• Official Journal of the European Union (EUR-Lex)
• European Commission legislative proposals and delegated acts
• EFRAG European Sustainability Reporting Standards (ESRS)
• Relevant EU regulatory guidance documents and FAQs

Regulatory data is periodically updated. The knowledge base version and last update date are maintained internally. SOSCO does not guarantee real-time coverage of all regulatory changes.

6. Limitations & Uncertainty

Users should be aware of the following limitations:

• Regulatory evolution: EU sustainability regulations are actively developing. Assessment outputs reflect the regulatory landscape at the time of the last knowledge base update and may not capture recent amendments or new delegated acts.
• Input quality: Assessment accuracy depends on the completeness and accuracy of company and product information provided by users.
• Jurisdictional scope: SOSCO currently focuses on EU regulations. National transposition differences across EU member states may affect specific compliance obligations.
• Not legal advice: SOSCO outputs are informational and do not constitute legal, accounting, or professional compliance advice.
• AI limitations: AI-generated responses may occasionally contain inaccuracies. Citations to source documents are provided where available to support verification.

7. Updates & Versioning

This methodology page is versioned and updated when material changes are made to SOSCO's assessment approach, supported frameworks, or data sources.

8. Contact

Questions about our methodology? Contact us at our contact page or email hello@sosco.io.