Product Update

ESG Analytics

By February 25, 2021 No Comments

Inovestor partnered with Sustainalytics, the largest pure-play investment research and ratings firm dedicated to responsible investment and ESG research, with over 25 years of experience in ESG and corporate governance.

This new add-on provides a mix of quantitative and qualitative ESG content and tools to help you integrate ESG factors in your portfolio and identify potential risks of companies.

To start your ESG analytics trial on over 12,000 companies worldwide, click here or contact your account executive.

 

The Sustainalytics company-level ESG Risk Score measures the degree to which a company’ s economic value may be at risk driven by materially relevant ESG factors. The ESG Risk Score is based on a two-dimensional materiality framework that measures a company’s exposure to sub-industry specific material risks and how well a company is managing those risks. ESG Risk Scores are categorized across five risk levels: negligible, low, medium, high and severe. The scale is from 0–100, with 100 being the most severe.
This data point measures the degree to which a company is exposed to risk driven by environment, social or governance issues. The methodology was developed by Sustainalytics in the Fall of 2018 and captures the total exposure of a company’s economic value to ESG risk. This ESG risk is then broken down into various parts: unmanageable, manageable, managed and unmanaged. The unmanaged portion is the Sustainalytics ESG Risk Rating.
Under Sustainalytics methodology, at the company level, this data point represents the portion of ESG risk that a company manages through its policies, programs, management systems etc. The remainder of the manageable risk is called Management gap.
Company Environmental Risk Scores from Sustainalytics measure the degree to which a company’s economic value may be at risk driven by environmental factors. The environmental risk represents the unmanaged environmental risk exposure after taking into account a company’s managment of such risks. The Environmental Risk Scores are displayed as a number between 0 and 100, though most scores range between 0 and 25.
Company Social Risk Scores from Sustainalytics measure the degree to which a company’s economic value may be at risk driven by social factors. The social risk represents the unmanaged social risk exposure after taking into account a company’s management of such risks. The Social Risk Scores are displayed as a number between 0 and 100, though most scores range between 0 and 25.
Company Governance Risk Scores from Sustainalytics measure the degree to which a company’s economic value may be at risk driven by governance factors. The governance risk represents the unmanaged governance risk exposure after taking into account a company’s management of such risks. The Governance Risk Scores are displayed as a number between 0 and 100, though most scores range between 0 and 25.
Name of the top 3 material ESG issues considered by an analyst to be high priority and has a company-specific, analyst written analysis in the ESG Risk Rating report.
Sustainalytics provides an assessment of controversies using news screens of over 60,000 sources. A news report of an issuer’s alleged or actual misconduct is assessed to determine stakeholder impact and reputation risk within 48 hours of the event. Sustainalytics evaluates 10 different topic areas on a rating scale from 0–5 where 5 is the most severe.
Sustainalytics product involvement data points identify the nature and extent of a company’s involvement in a range of product and business activities for screening purposes.
ESG Analytics has also been added to the My Portfolios module. You can assess the overall ESG risks of your portfolio and identify the elements pertaining to these risks, whether it is due to environment, social or governance factors.

Click here to add ESG analytics to your account.