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

A Webinar on Solving the ESG Data Problem - Q&A

[fa icon="calendar'] Oct 31, 2018 12:11:54 PM / by Bahar Gidwani

Bloomberg ESGHub webinar 3

CSRHub recently shared fresh insights into how to more effectively use ESG Data.  Bloomberg sponsored the webinar and many of those attending were Bloomberg terminal users.  CSRHub also invited members of its community to hear how to get more out of ESG Data.

We have made the presentation slides used during the webinar available for you to download and use as a reference. 

You may request the webinar replay here.

CSRHub recently launched an application called ESGHub on the Bloomberg terminal (APPS ESGH <GO>).  The app combines CSRHub data with Bloomberg’s ESG Metrics to create a new tool for examining portfolios and other large sets of investment instruments.  The webinar attempted to show why this type of tool is needed and how the tool may help better integrate ESG data into the business processes of those who have a Bloomberg terminal.

Request an Overview of ESGHub

ESGHub Guide 1

Bloomberg’s ESG Metrics is one of the largest sources of company self-reported ESG data.  Bloomberg collects information on 900 indicators from about 10,000 companies.  Other ESG sources use human analysts to generate company ESG ratings.  We showed webinar attendees that company self-reported and analyst-generated ratings tend to be inconsistent and confusing.

Patrick Drum, a senior portolio manager from Saturna Fund, shared his process for selecting instruments for his Sustainable Bond fund.  He reviews a number of specific company-reported items and integrates input from several human analyst rating sources.  His slides showed how hard it was to get consistent company-reported data.  He also illustrated the range of views that human analysts had on the three instruments he wanted to evaluate.

We then showed how CSRHub’s ESG data aggregation normalization process improves the correlation between both self-reported and human analyst data sets.  We discussed the overall distribution of CSRHub’s consensus ESG ratings and showed CSRHub’s big data processing system can bring into focus the data for a particular company.

The ESGHub app (a ten day free trial is available on the Bloomberg terminal at “APPS ESGH <GO>”) brings together Bloomberg and CSRHub data into an easier to understand and use format.  Two thirds of those who attended indicated that they were encouraged now to make more use of ESG data.

The audience asked a number of interesting questions:

Q: Can ESGHub be used to screen green or gender bonds?

A: Yes, if the issuer has shared data on its sustainability programs.  ESGHub combines data from Bloomberg and CSRHub.  It can only screen an issuer if there is data available from both of these sources.

Q: How is CSRHub’s approach to generating a consensus score different from simply averaging a number of ESG ratings?

A: CSRHub scores are a better estimate of consensus than any single or simple average.  The webinar slides gave good examples of the focus and clarity that CSRHub’s Big Data system produces.  There is also information on the CSRHub web site about its proprietary aggregation, mapping, and normalization process.

Q: What strategies for engaging companies about ESG deficiencies could come from using ESGHub?

A: A company that is low on disclosure (has a poor Bloomberg ESG Metrics score) but that is well-regarded for its sustainability performance (has a good CSRHub rating), should disclose more.  One who has the opposite problem needs to improve its internal ESG programs.  ESGHub users should be able to both offer useful advice to companies and illustrate their advice by making ESGHub charts that compare a company to its peers.

Q: Would ESGHub cover companies that other ratings sources don’t?

A: During the webinar, Patrick offered an example of three instruments he considered for his fund.  It was encouraging to see that all three had CSRHub ratings.  Because CSRHub aggregates so many different sources, it should generally have more ratings than any other ESG data source.

 


Bahar_Gidwani2_preferredBahar Gidwani 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 180M data points from 550+ data sources including 12 leading ESG analyst databases. Our patented algorithm aggregates, normalizes, and weights data to rate 18,000 companies in 132 countries across 136 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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Bloomberg and CSRHub Webinar – Solving the ESG Data Challenge

[fa icon="calendar'] Oct 16, 2018 9:30:39 AM / by CSRHub Blogging

Bloomberg ESGHub webinar

With the increased demand for ESG (environment, social, governance) data and conflicting opinions on company performance by different data providers, investors are searching for ways to measure ESG, variance among different ESG ratings and correlations between leading datasets. 

Join us Wednesday, October 24th at 11:00 am EDT to help solve your ESG data challenges. Patrick Drum, Senior Investment Analyst for Saturna Capital will share his investment strategy tips. 

The strategy session will be followed up by a panel of ESG experts who will discuss how to successfully navigate the evolving landscape of ESG data using the new ESGHub app at APPS ESGH <GO>.

 

Register here. 

 

Featured speakers

Patrick Drum Patrick Drum
Senior Investment Analyst
Saturna Capital
Cynthia Figge Cynthia Figge
CEO and Cofounder
CSRHub
Bahar Gidwani Bahar Gidwani
Cofounder and CTO
CSRHub

 

Discussion Topics

  • Make sense of the broad array of information with a big data approach
  • Discuss a new class of portfolio analysis tools to increase value and reduce risk
  • Explore new strategies for using ESG information

 

Date & Time

Wednesday, October 24, 2018
11:00am – 11:30pm EDT

 

About the app

The ESGHubTM app allows you to quickly review any portfolio of stocks or bonds and see how much ESG information each originating entity has disclosed. 

Test drive the ESGHub app for free before the webinar by running APPS ESGH <GO> on your Bloomberg Terminal.

 

About the business

The Bloomberg App Portal is your destination for the applications you need to optimize your workflow, better analyze the markets, and stay ahead of the curve. The apps on the App portal have been created by world class analytics companies and global investment banks, all integrated with the powerful data and analytics of the Bloomberg Terminal. Visit APPS <GO> today to search, trial and run apps that can help you stay on top.

 

 

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CSRHub Launches its ESGHub App on the Bloomberg App Portal

[fa icon="calendar'] Sep 27, 2018 9:00:04 AM / by CSRHub Blogging

ESGHub by CSRHub 3

 

 

  

CSRHub Launches its ESGHubTM App on the Bloomberg App Portal

New functionality allows investors to compare ESG scores

New York, September 27, 2018 — CSRHub, a provider of corporate social responsibility (CSR) and sustainability rankings, today announced the launch of its ESGHubTM app on the Bloomberg App Portal at {APPS <GO>}. Bloomberg Terminal subscribers can now access the environmental, social, and governance (ESG) disclosure and ratings performance of companies in portfolios, indexes or other financial instruments.

The tool provides subscribers with the ability to compare metrics from Bloomberg and CSRHub at the portfolio level and drill down on the details associated with more than 9,000 companies, which in aggregate, represent more than 90 percent of the world’s market capitalization. ESGHub is designed to help build more resilient portfolios and allow investors to discover new opportunities and views of company performance.

This ESGHub tool on the Bloomberg App Portal is introduced during a time of heightened demand by investors for more ESG reporting and transparency on material issues. To do this effectively, ESG factor analysis requires a simple, powerful and comprehensive set of data. ESGHub, in concert with Bloomberg, provides Terminal subscribers access to deeper insight and an opportunity to note ESG performance across specific companies.  

The ESGHub app generates a scoring matrix to compare Bloomberg’s analysis of corporate sustainability performance with CSRHub’s data. CSRHub aggregates more than 5,000 indicators drawn from more than 500 sources of information on companies' ESG performance, and analyzes twelve factors such as diversity and labor rights, leadership ethics, energy and climate change, training health and safety, and transparency and reporting.

“We are proud to use the Bloomberg App Portal to provide Bloomberg Terminal subscribers with our big data ratings on corporate ESG performance,” said Cynthia Figge, CSRHub CEO and co-founder. “The Bloomberg App Portal enables us to deliver a value-added service to the global financial community as an integrated feature of the Bloomberg Terminal service."

Mike King, Global Business Head for the Bloomberg App Portal said, "ESGHub's launch on the App Portal reinforces our commitment to building a diverse ecosystem of applications on the App Portal. We are continually looking to collaborate with companies like CSRHub in order to bring new, high value applications that complement existing Terminal functionality for the Bloomberg Terminal subscriber base."

The Bloomberg App Portal gives Bloomberg Terminal subscribers access to a diverse library of financial tools, created by Bloomberg clients and third-party software developers from around the world. Applications are reviewed and selected for the Bloomberg App Portal based on a variety of parameters, including the application’s ability to complement and enhance existing features and information resources of the Bloomberg Terminal service. The ESGHub tool complements Bloomberg’s commitment to incorporate more financial data, analysis, news and other capabilities onto the Bloomberg Terminal service that support sustainable investment activities.

Bloomberg Terminal subscribers globally can find dozens of contributed applications on the Bloomberg App Portal at {APPS <GO>} for data visualization, financial analysis, charting, risk modeling and other workflows. CSRHub's ESGHub app is listed as ESGHub on the Bloomberg App Portal or can be accessed directly at {APPS ESGH <GO>}.

To learn more about using ESGHub with the Bloomberg Terminal service or for information about the Bloomberg App Portal community, please contact app_portal@bloomberg.net.

 

###

 

Media Contacts                               

Brittany Baker                   Bloomberg          +1 212-617-0866               bbaker89@bloomberg.net

Cynthia Figge                     CSRHub               +1 425-392-9993               cynthia@csrhub.com

 

About CSRHub

CSRHub is the largest ESG and sustainability rating and information platform globally. We aggregate 180M data points from 550+ data sources including 12 leading ESG analyst databases. Our patented algorithm aggregates, normalizes, and weights data to rate 18,000 companies in 132 countries across 136 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.

For more information, visit www.csrhub.com or request an ESGHub overview.

 

About Bloomberg

Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal service. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.

BLOOMBERG, BLOOMBERG TERMINAL and BLOOMBERG APP PORTAL are trademarks and service marks of Bloomberg Finance L.P., a Delaware limited partnership, or its subsidiaries. All rights reserved.

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CSRHub and Bloomberg - part 2

[fa icon="calendar'] Dec 16, 2015 10:02:32 AM / by Bahar Gidwani

By Bahar Gidwani

Part 2 of a 2-part series

The first part of this post described the reasons iCompli and CSRHub decided to create the new ESG Metrics Brief report.  We thought it might be helpful to provide a concrete example of the kinds of information—and opportunities for action—that these reports create.

At number 8 on the 2014 Fortune list, Ford is a well-studied, multinational with a long history of interest in sustainability.  Ford has reported to the GRI since 2007, to CDP since 2006, and has won many awards and recognitions.  CSRHub has 139 different sources of information on Ford and 22,501 different ratings points.  Ford’s overall CSRHub rating of 60 puts it at the 71% percentile among the 118 motor vehicle manufacturers that CSRHub tracks.

The overview

The first chart in Ford’s ESG Metrics Brief provides a visual representation of this relative performance:

Ford CSRHub overall ratings

While overall performance is well above average, it is clear that of the four major categories of sustainability performance that CSRHub tracks, Ford is strongest in “employees” and weakest in “governance.”

The ESG Metrics Brief has access to CSRHub’s eight years of ratings history and a similar range of history from Bloomberg.  This chart shows how Ford’s CSRHub rating has changed over this time period.

ESG Metrics Brief CSRHub Rating

The ESG Metrics Brief next brings in other ESG sources from Bloomberg’s system.  Here is the relative performance for Ford as seen by ISS and by CDP.

ISS Governance QuickScore

CDP Performance Score

Drilling down

After a user has reviewed the overall situation for a company, he or she can “drill down” into each of the four main categories that CSRHub covers.  For instance, here is the change over time for Ford’s governance rating, compared to those of its peers.

CSRHub Governance Rating

The above chart uses CSRHub ratings.  Other sources and metrics drawn from Bloomberg help further explain Ford’s loss of competitive advantage compared to its peers in this area.  One factor may be a reduction in the amount and quality of Ford’s disclosures.

Bloomberg Gov Disc Score

A second factor could be the perception that Ford’s CEO compensation is out of line with that of its peers.

CEO compensation

Bloomberg tracks a wide array of metrics and policies that give users of the ESG Metrics Brief even more insight into this part of Ford’s sustainability behavior.

ESG Metrics Brief KPIs

CSRHub comparators

The bottom line

We believe that an ESG Metrics Brief will be a good starting point for those who want to understand one company’s sustainability performance.

  • The report is easy to obtain.  It takes three business days or less to generate each report.
  • The report is inexpensive.  Each report costs only $495—much less than the time and energy required for most researchers to generate something comparable, and far less than the cost to license the datasets.
  • The report is broad and comprehensive.  You get data on more than 120 indicators across all areas of sustainability.  Each report normally compares against between 10 and 30 peers.
  • The report helps inform the stakeholders in a sustainability strategy process.  You can share the report internally and help prove your case for new programs, further investments, and shifts in strategy.

We have more data than we can ever fit into any single report!  We look forward to getting feedback from our users about the ESG Metrics Brief and continuing to fine-tune it to meet their needs.

See more now, including a full sample, at  http://www.csrhub.com/content/icompli-csrhub-esg-metrics-brief/.

 


Bahar GidwaniBahar Gidwani is CEO and Co-founder of CSRHub.  He has built and run large technology-based businesses for many years. Bahar holds a CFA, worked on Wall Street with Kidder, Peabody, and with McKinsey & Co. Bahar has consulted to a number of major companies and currently serves on the board of several software and Web companies. 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 provides access to the world’s largest corporate social responsibility and sustainability ratings and information.  It covers over 15,000 companies from 135 industries in 132 countries. By aggregating and normalizing the information from 400 data sources, CSRHub has created a broad, consistent rating system and a searchable database that links millions of rating elements back to their source. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices, and seek ways to improve corporate sustainability performance.

 

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Bloomberg ESG and CSRHub Benchmark - part 1

[fa icon="calendar'] Dec 15, 2015 10:00:21 AM / by Bahar Gidwani

By Bahar Gidwani

Part 1 of a 2-part series

Sustainability professionals spend hundreds of thousands of dollars and months of time developing and managing their sustainability programs.  Most dread the almost inevitable question from their manager or their manager’s manager—”How are we performing relative to our peers?  Where are we doing well and where do we need to improve?”  The iCompli CSRHub ESG Metrics Brief is designed to make it easy to answer these questions in a fact-based and authoritative way.

Why has it been hard to get answers?

Sustainability managers know their own programs—and understand the data they generate and report.  However, hundreds of outside sources each form their own opinions on a company’s sustainability performance.  They use different criteria and come to different conclusions—and both their analysis methods and their viewpoints are not always readily available.

For instance, is Wal-Mart more socially responsible than Target?  The barriers to answering this question include:

  • Too much information – CSRHub contains 131 sources of sustainability information for Wal-Mart and 118 sources for Target.
  • Gaps in the data - 85 of the above data sources rate both company, but many sources are unique to only one of the two companies.
  • Broad range of comparable companies – CSRHub tracks 274 retail companies worldwide.  To fairly compare Wal-Mart and Target, one needs to put them into context against all of these other competitors.

 

Our new solution required combining two components

CSRHub’s database system maps, merges, and normalizes sustainability ratings from 425 sources.  It includes information from Wall Street firms such as Thomson, MSCI, EIRIS, and Trucost; data from non-governmental organizations such as CDP, GRI, Transparency.org and the UN Global Compact, and information from government databases, publications, and various types of certification and crowd sources.  By combining almost 80 million pieces of data, CSRHub can generate objective scores of the perceived sustainability performance for more than 15,000 companies in 132 countries.

CSRHub ratings process

The end result shows that Target is generally more sustainable than Wal-Mart—although Wal-Mart is seen has having better performance on environmental issues.

CSR Ratings for Target vs Walmart

This perception perspective helps identify where a particular company is weak or strong.  But, most corporate managers need to also see comparable sets of facts and figures, before they can invest in new projects or change their strategy.  The new ESG Metrics Brief combines CSRHub’s insights with the hard facts contained in Bloomberg’s well-respected ESG (Environment Social Governance) Database.

Bloomberg tracks data on more than 30,000 publicly-traded companies, from around the world.  Its data set includes information not only hundreds of data items its own staff gathers from public sources and company filings but also data from other major ESG sources such as Sustainalytics and ISS.  The result is a set of comprehensive reports on 6,969 companies in 77 countries.

ESG regions

Look for part 2 of this series to see a concrete example of the kinds of information—and opportunities for action—that the new ESG Metrics Brief's create.

To see more now, including a full sample, go to www.csrhub.com/content/icompli-csrhub-esg-metrics-brief/.


Bahar GidwaniBahar Gidwani is CEO and Co-founder of CSRHub.  He has built and run large technology-based businesses for many years. Bahar holds a CFA, worked on Wall Street with Kidder, Peabody, and with McKinsey & Co. Bahar has consulted to a number of major companies and currently serves on the board of several software and Web companies. 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 provides access to the world’s largest corporate social responsibility and sustainability ratings and information.  It covers over 15,000 companies from 135 industries in 132 countries. By aggregating and normalizing the information from 400 data sources, CSRHub has created a broad, consistent rating system and a searchable database that links millions of rating elements back to their source. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices, and seek ways to improve corporate sustainability performance.

 

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