Research and ratings firm Sustainalytics is launching a set of environmental, social and governance indicators aimed at helping investors with security selection, portfolio construction, risk and scenario analysis, as well as meeting disclosure requirements.
The data covers more than 220 ESG indicators across several themes, subdivided into three categories.
The ESG management indicators are meant to evaluate the quality of corporate ESG-related management systems, policies and programs. These can range from a company’s carbon intensity trend, relative to its industry peers, to the quality of a business ethics program.
The corporate governance indicators aim to assess how helpful a company’s corporate governance management practices, structures and behaviours are in enabling it to follow through on its business strategy and create long-term value.
Finally, the ESG event indicators are intended to measure the frequency and severity of a company’s connection to ESG-related operational or supply chain controversies, such as use of particular land, or labour disputes.
“With more mainstream investors taking ESG considerations into account, Sustainalytics’ institutional clients are looking for a robust and flexible dataset that can support their unique investment decision-making and ESG integration processes,” said Megan Wallingford, product manager of Sustainalytics’ ESG Data, in a press release. “By offering indicator-level data through our ESG Data product and analysis via our ESG Research and Ratings, we are able to fulfill investors’ wide array of ESG information needs.”