ESG Customization Module

This module helps a manager view a firm’s E, S, G, and composite scores in four important contexts - by sector, region, market cap, and the universe. These dimensions capture industry, regional, and size-related risks. The module also helps a user tailor the ESG score by sector as per their research and in-house view of the importance of individual pillars. A manager can use this as a competitive advantage.

The scores are contextualized relative to the firms in the entire YB universe irrespective of their industry group, size, or jurisdiction.

The scores are contextualized relative to the firms in the same industry group irrespective of their size or jurisdiction. This context assesses the firm relative to firms that produce similar products, have similar supply/value chains, and face similar scrutiny, transition, regulatory, and social risks.

The scores are contextualized relative to the firms in the same region irrespective of their industry group or size. This context assesses the firm relative to firms that are located in the same region and face similar geopolitical and regulatory regimes.

The scores are contextualized relative to the firms that have similar size market cap (mega-cap, large-cap, etc.) irrespective of their industry group or region they belong. The regulatory bodies, politicians, and the public have similar expectations about their products, policies, and processes.

It allows a user to set default weights for E, S, and G pillars to compute the composite ESG score. These weights would be applied to all sectors unless they are overridden by the sector-specific weights. A manager can use this to tailor the ESG score and include that in their forecast model.

It allows a user to customize ESG score by sector further. This refinement would help the sector-based investment team to reflect their views on the importance of each pillar in the computation of ESG score and integrate that into the investment process.