CSRHub Blog Research on ESG metrics and comments on sustainability best practice

New Wave of ESG Demand

[fa icon="calendar'] Jul 22, 2020 9:37:25 AM / by Bahar Gidwani

This past year of social and environment pressures (Covid-19, racism inequity, climate change, global risks) has created a new wave of demand for ESG data and insight. A growing number of corporates, professional firms and financial asset owners and managers are interested in ESG.

For example, more than 2,800 investors, representing 90% of world financial assets have now committed to the UN Principles for Responsible Investment (UNPRI). In response, companies are clarifying and harmonizing their reporting methodologies. More companies are reporting sustainability information. Around 50,000 entities have shared information about their sustainability performance either directly (about 12,000 have incorporated sustainability data in their public filings) or through participating in sustainability-related organizations or reporting systems.

ESG data providers are participating in this new wave of investor interest by offering:

  • Broader coverage of entity types (i.e., public, private, not-for-profit) and coverage of more types of investments (e.g., equities, debt, REITs)
  • Comparable, stable scores with enough history that an ESG factor can be used in a quantitative model or automated screening process
  • Methods for integrating ESG with other financial and market return data sets

In previous articles we have referred to this new wave as “third-era” investors are driven to integrate ESG data by three themes:

  • Marketing. In order to attract and retain assets, investors highlight their ESG methodology and follow it, even if it may result sometimes in underperformance.
  • Risk avoidance. Asset managers who prioritize safety and downside reduction may see ESG data as an additional tool for identifying and avoiding risk.
  • Materiality. Quantitative analysts have been using “alternative” data sets for years. ESG data may provide a new opportunity for algorithm-driven alpha generation.

ESG data is being integrated into investment processes through direct purchase of individual data sets. They are also being integrated into various types of data curation and distribution systems. ESG data used to be a subcategory of “alternative data.” It has now become its own category and the number of providers and variety of data sets available has grown. 

The new wave or “third-era” investment strategies will rely on data sets that have these characteristics:

    • Broad, deep coverage. To be useful in an investment process, a data set should cover not only the equities an investor already holds, but also most if not all equities in similar entities. In some industries, there are large privately held competitors. ESG-oriented analysts should like data sets that also cover private companies.
    • Streamlined factors, complete coverage of the factors, and a long stable history. Some ESG data sets offer two hundred, one thousand or even several thousand indicators. This amount of detail can overwhelm investors who are relatively new to ESG issues. It is also difficult to fill in all of “slots” in a data set. Many major ESG sources cannot complete 70% or more of their bottom level of indicators. Finally, most financial analysts are used to being able to study market patterns over long time horizons. No ESG data set goes back further than the 1990s—so analysts still cannot see how ESG factors relate to stock performance through a wide range of market conditions. Still, it is helpful if an ESG source has at least ten years of history and if it has made few or no changes to its methodology during this time.
    • Works well when combined with other data sets. Many ESG data users purchase more than one type of data. They extract value from combining these data sets to examine different aspects of a company’s sustainability performance. It is important to pick data sets that have enough identifying information (e.g., ticker codes, ISINs, name variations) that they can be combined. It helps too, if it is easy to pull data from a data provider’s site or application programming interface (API).

These investors will demand ESG data sets that give them marketing differentiation, ways to reduce risk, and opportunities to generate alpha. They are likely to use several data sets and combine them in a proprietary way, as they seek to make their understanding of ESG data part of their competitive advantage in the investment marketplace.

CSRHub ESG Business Intelligence

For more information on accessing ESG ratings via the CSRHub ESG Business Intelligence data feed, please visit the Open:FactSet Marketplace.

 

 

Bahar.GidwaniBahar Gidwani is CTO and Co-founder of CSRHub. Bahar has built and run large technology-based businesses for many years. Bahar holds a CFA (Chartered Financial Analyst) and was one of the first people to receive the FSA (Fundamentals of Sustainability Accounting) designation from SASB. Bahar worked on Wall Street with Kidder, Peabody, and with McKinsey & Co. He has founded several technology-based companies and is a co-founder of CSRHub, the world’s broadest source of corporate social responsibility information. He has an MBA from Harvard Business School and an undergraduate degree in physics and astronomy. He plays bridge, races sailboats, and is based in New York City.

CSRHub is the largest ESG and sustainability rating and information platform globally. We aggregate 230 million data points from 650+ data sources including leading ESG analyst databases. Our patented algorithm aggregates, normalizes, and weights data to rate 18,000+ companies in 141 countries across 134 industries. We track 97% of world market capitalization. We cover 12 subcategories of ratings and rankings across the categories of environment, employees, community and governance. We show underlying data sources that contribute to each subcategory’s ratings. CSRHub metrics are a consensus view (any 2 sources may have about a 30% correlation so we make sense of the disparate data). We tag companies for their involvement in 17 Special Issues. We provide Macro-enabled Excel dashboard templates, customizable dashboards, and an API. Our big data technology enables 85% full coverage of data across our rated companies and robust analyses. We provide historical ratings back to 2008.

 

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CSRHub and Intrinio Announce Partnership

[fa icon="calendar'] Jun 24, 2020 9:51:55 AM / by CSRHub Blogging

CSRHub Intrinio

CSRHub, a leading provider of ESG (Environment, Social, Governance) consensus ratings, is pleased to announce it has partnered with Intrinio, a financial data marketplace that provides fintech data and applications for developers and investors. ESG data is becoming an important component of investment decision processes. Intrinio has partnered with CSRHub to help combine signals about corporate ESG / sustainability performance with the many other data sets it has curated for its system.

Both CSRHub and Intrinio are committed to making financial and ESG data affordable and easy to access so investors and analysts can save money and time building meaningful outcomes.

Investors and researchers increasingly want to integrate their financial data with ESG data for more efficient and impactful analysis. CSRHub data can be used to benchmark ESG performance, increase corporate market value, uncover portfolio opportunities and risks, back-test theories about ESG behavior, and integrate ESG trends into other Business Intelligence data sets.

Using a patented algorithm that aggregates and harmonizes disparate data from 690+ ESG sources, CSRHub generates a consensus score for the ESG performance of 19,000 companies from 134 industries in 143 countries. With many disparate sources of ESG information available, centralizing and interpreting ESG metrics has become burdensome for many firms. CSRHub streamlines ESG data and makes it useful and powerful.

“Partnering with Intrinio to deliver both their analytics and CSRHub’s ESG data to clients will enable investors to leverage powerful insights and enhance their decision-making processes,” said Cynthia Figge, CEO of CSRHub.

“Many of our customers see us as their dedicated data partner and one-stop shop for a variety of financial data feeds. Joining forces with CSRHub to offer their innovative data is a crucial step for us when it comes to serving our clients as they develop cutting-edge apps, algorithms, platforms, and websites,” said Rachel Carpenter, CEO of Intrinio.

For more information, see https://intrinio.com/products/csrhub-esg-ratings.

 

About CSRHub

CSRHub offers one of the world’s broadest and most consistent set of Environment, Social, and Governance (ESG) ratings, covering 19,000 companies. Its Big Data algorithm combines millions of data points on ESG performance from hundreds of sources, including leading ESG analyst raters, to produce consensus scores on all aspects of corporate social responsibility and sustainability. CSRHub ratings can be used to drive corporate, investor and consumer decisions. For more information, visit www.CSRHub.com. CSRHub is a B Corporation.

About Intrinio

Intrinio is a financial data partner powering innovation by providing high-quality data, cutting-edge tools, and world-class support to quant funds, fintech companies, and academic institutions. Intrinio’s powerful application programming interface (API) is designed for the needs of engineers and developers and supported by more than 200 financial data feeds that can be easily integrated into applications, websites, algorithms, and other financial tools. Learn more at https://intrinio.com.

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CSRHub Partners with FinMason to Provide ESG Ratings for Wealth Mgmt

[fa icon="calendar'] Jun 18, 2020 8:59:13 AM / by CSRHub Blogging

New YorkJune 18, 2020 -- CSRHub, the leading provider of ESG (Environment, Social, Governance) consensus ratings, today announced that it has partnered with FinMason, a FinTech firm and investment analytics provider that enables WealthTech platforms to accelerate development and time-to-market, to redistribute its ESG ratings via FinMason’s award-winning API. CSRHub_FinMason

“CSRHub’s multifaceted approach to standardizing ESG data and rankings, and the ability they offer to drill down to several subcategory levels, gives investors a holistic and normalized basis upon which to compare the sustainability performance of various firms,” said Kendrick Wakeman, CEO of FinMason. “We’re excited to contribute the scalability and ease-of-use that our API delivers to help make CSRHub’s ESG data more readily accessible to WealthTech firms and, ultimately, end investors.”

CSRHub helps investors, corporations, and API partners integrate ESG data into their decision-making processes. Using a patented algorithm that aggregates and harmonizes disparate data from over 650 ESG sources, CSRHub generates a consensus score for the ESG performance of more than 19,000 companies from 134 industries in 143 countries. With many disparate sources of ESG information available, centralizing and interpreting ESG metrics has become burdensome for many firms. CSRHub streamlines ESG data and makes it useful and powerful. CSRHub data can be used to benchmark ESG performance, increase corporate market value, uncover portfolio opportunities and risks, back-test theories about ESG behavior, and integrate ESG trends into other Business Intelligence data sets.

“Partnering with FinMason to deliver both their analytics and CSRHub’s ESG data to clients via a single API will empower platforms and investors to leverage powerful insights and enhance their decision-making processes,” said Cynthia Figge, CEO of CSRHub. “The ease of integration that their API offers, and the synergy that their analytics have with our ESG data for better-equipping investors, make them a natural choice as a partner.”

Firms interested in learning more can contact CSRHub at www.CSRHub.com or FinMason at www.finmason.com.

ABOUT CSRHub

CSRHub offers one of the world’s broadest and most consistent set of Environment, Social, and Governance (ESG) ratings, covering 19,000 companies. Its Big Data algorithm combines millions of data points on ESG performance from hundreds of sources, including leading ESG analyst raters, to produce consensus scores on all aspects of corporate social responsibility and sustainability. CSRHub ratings can be used to drive corporate, investor and consumer decisions. For more information, visit www.CSRHub.com. CSRHub is a B Corporation.

ABOUT FINMASON INC.

FinMason, a data redistributor and one of the world's largest investment analytics engines for financial services platforms, enables WealthTech platforms to accelerate development and time-to-market while retaining control of their user experience. Built with speed, flexibility, and scalability in mind, the financial technology firm calculates and delivers more than 700 analytics on every publicly-traded asset in the world via one simple API. For more information, visit www.FinMason.com and follow FinMason on TwitterLinkedIn and Facebook.

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Telemet Adds Popular ESG Data to Its Flagship Investment Platform

[fa icon="calendar'] Jun 10, 2020 9:43:25 AM / by CSRHub Blogging

Alexandria, VA  - Telemet America, Inc. a provider of integrated financial information, analytical applications, and charting has added ESG sustainability data to its popular Telemet Orion investment platform sourced from CSRHub®.

CSRHub’s sustainability data adds to a growing list of new services from Telemet in recent years.

ESG ratings and rankings drive perceptions of brand, risk and value.  As such they may affect a company’s business operations and investment performance.  They may also drive buy or sell decisions by asset owners and reveal differences in asset owning preferences.  These impact an institution’s ability to gather and maintain assets across generations.

About Telemet

Since 1979 Telemet has offered real-time market data, stunning charts, deep financial research and portfolio attribution analysis for investment professionals.   Telemet sustainability metrics are deeply integrated into the Telemet Orion investment platform and may be incorporated into portfolio reports to highlight ESG factors.   

About CSRHub®

CSRHub provides access to corporate social responsibility and sustainability ratings and information on  19,000 companies from 134 industries in 143 countries.  Investment and corporate managers and researchers use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.  Their data comes from socially responsible investing research firms, well-known indexes, publications, “best of” or “worst of” lists, NGOs, crowd sources and government agencies. By aggregating and normalizing the information from these sources, CSRHub has created a broad, consistent rating system and a searchable database that links each rating point back to its source.

For more information, contact Telemet at walker@taquote.com  703-548-2042

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CSRHub ESG Webinars

[fa icon="calendar'] May 20, 2020 11:14:50 AM / by CSRHub Blogging

In case you missed it with all that is going on in the world these days, we thought we would curate a list of recent webinars for your ESG investing education.

CSRHub® co-founder Bahar Gidwani CTO gave a webinar presentation Third Era of ESG sm-1The Third Era of Integrating ESG Into Investment Processes in partnership with BrightTALK.

A wider range of asset owners are requesting investment products that have sustainability-related claims. This has prompted the creation of passive ETFs, single theme funds (e.g., gender lens, decarbonized), and various types of hedge funds (including long-short and short-only offerings).

Download the webinar to hear what third generation investors appear to be looking for, https://esg.csrhub.com/csrhub-webinar-3rd-era-esg-investing.

 

CSRHub® co-founders Cynthia Figge CEO and Bahar Gidwani CTO gave a webcast presentation Integrating ESG Consensus Ratings to Create Actionable Signals Business Intelligence in partnership with FactSet.

Watch the on-demand webcast here, https://bit.ly/38YJEQpCSRHub_FactSet_Webcast

See more on CSRHub on the Open:FactSet Marketplace here, https://esg.csrhub.com/factset.

See CSRHub’s ESG Business Intelligence Open:FactSet catalog page here, https://open.factset.com/products/csrhub-esg-business-intelligence/en-us.

 

As a B Corporation, the CSRHub team members are all working remotely and are ready to continue serving your requests.


CSRHub offers one of the world’s broadest and most consistent set of Environment, Social, and Governance (ESG) ratings, covering 19,000 companies. Its Big Data algorithm combines millions of data points on ESG performance from hundreds of sources, including leading ESG analyst raters, to produce consensus scores on all aspects of corporate social responsibility and sustainability. CSRHub ratings can be used to drive corporate, investor and consumer decisions.

 

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