Similar to traditional finance, it is important to get several different viewpoints into ESG / sustainability issues and to understand how to synthesize them. There are several key areas we cover to ensure we have great coverage.
Broad ESG Data: We selected Refinitiv as the broadest dataset for ESG indicators and policies that also gives us access to Lipper/mutual fund data as well as the most transparency and ability to help our clients understand where the data comes from and how to check it.
Analyst Ratings: While we believe quantitative indicators should be the focus there is definitely a role for analyst commentary, especially where companies do not report key metrics. For this reason, we are integrating ratings from several ratings groups like MSCI to show where there is a lot of dispersion (disagreement) around ratings and where it may be good to dig deeper.
Climate Data: We several sources for carbon data that includes data from company websites, CSR reports and CDP disclosures, widely viewed as the most accurate company-reported data due to the detailed submission protocol and verification procedures.
Independent Datasets: Because company reporting is somewhat limited and faces inherent bias, we utilize independent, objective sources for additional oversight and viewpoints. We devote a substantial amount of time to searching for new and interesting datasets as these can have the greatest impact. Some datasets we especially like are: Subsidy Tracker, Access to Medicine, and the Greenpeace Plastics Audit.
News/Controversies: We partnered with Truvalue Labs (TVL) on news, allowing you to see relevant (material) articles on the platform related to your portfolio holdings and (upcoming) change indicators for where you should pay attention regarding scandals or positive business shifts. We are also integrating RepRisk and MSCI controversies currently as we feel they are a great complement to TVL that focuses more on major controversies and overall trustworthiness.