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’s Bahar Gidwani Speaking at Skytop’s Generating Alpha

[fa icon="calendar'] Apr 16, 2020 10:36:38 AM / by CSRHub Blogging

Skytop Strategies will launch its Generating Alpha, ESG as a Core Driver SkytopGeneratingAlpha2020_Imageof Institutional Portfolio Performance on June 25th in New York. CSRHub Co-founder and CTO Bahar Gidwani will be speaking on Topic Briefing: State of Play ESG Integrations, The Third Era and moderate an Armchair Chat, ESG and Alpha: Causation Versus Correlation as an Obstacle to Full Integration.

Network with asset allocators, fund managers, investment consultants and capital market experts on investment strategies in the ESG field.

Explore the latest practices in portfolio construction to generate portfolio returns including screening, due diligence and how fund managers benchmark performance against traditional investment strategies.

Identify the state-of-play tools in benchmarking and data analytics that supports long term alpha generation.

Topic Briefing: State of Play
ESG Integrations, The Third Era
Presenter:
Bahar Gidwani, CFA, FSA, Co-founder & CTO, CSRHub

Armchair Chat
ESG and Alpha: Causation Versus Correlation as an Obstacle to Full Integration
Moderator:
Bahar Gidwani, CFA, FSA, Co-founder & CTO, CSRHub
Panelists:
Joshua Linder, CFA, Credit Analyst, Fixed Income, APG, Asset Management US Inc.
Mark Hays, Director of Sustainable and Impact Investing, Glenmede Trust Company
Michael Carty, Investment Expert

June 25, 2020 
PENTHOUSE 45
432 WEST 45th STREET
PH SUITE

For the full program, click here. Receive a 35% discount off the dated price using coupon code CSRHUB2020. Register today.

 


Bahar_Gidwani-10Bahar 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 19,000+ companies in 143 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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Who is responsible for a company’s ESG communications? Latest study from IR Magazine looks for answers

[fa icon="calendar'] Nov 5, 2019 9:29:46 AM / by CSRHub Blogging

A recent IR Magazine and Corporate Secretary survey found a disconnect from company to company, with regards to who is responsible for ESG communications. The results show ESG communications responsibility changes according to various factors, including cap size, region and company size.

Primary responsibility for ESG communications rests with a dedicated sustainability team at more than a third of companies polled, while responsibility lies with corporate communications at a further 28 percent. Depending on cap size, responsibility lies predominantly with the corporate or company secretary, while corporate communications tend to hold responsibility for ESG at smaller cap companies.[1]

As a result, IR Magazine and Corporate Secretary have launched a series of forums on ESG integration to bring together investor relations, sustainability professionals and corporate secretaries from a variety of public companies, to discuss how to take an integrated approach to investor expectations on ESG factors. The events will help companies make sense of the evolving trends around ESG and take action to improve relationships with shareholders, future-proof their businesses, and ensure a smooth proxy season. The team behind the events are keen to ensure that attending companies leave with a to-do-list that they can implement immediately.

Following the success of last year’s forum which saw more than 150 professionals in attendance, CSRHub is partnering with IR Magazine and Corporate Secretary to help companies respond to the growing demand for improved ESG practices and disclosures. The forum in London takes place on November 7.

The ESG Integration Forum that takes place in New York (December 5) is part of Sustainable Finance Week, a series of events based in New York focused on accelerating the next $10 trillion dollars in sustainable finance. There will be more than 1500 investors and corporates in attendance across all events that week - so there's only one place to be that week!

To find out more and book your place:

ESG Integration Forum – Europe, November 7, London: IRMagazine.com/esgeurope/

ESG Integration Forum, December 5, New York: IRMagazine.com/esg/

 

[1] IR Magazine Partners, ESG & Investor Engagement, 2019 https://www.irmagazine.com/content/esg-investor-engagement

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ecountabl and CSRHub Sign Data License Agreement

[fa icon="calendar'] Oct 18, 2019 9:50:03 AM / by CSRHub Blogging

October 17, 2019

ALEXANDRIA, VA and KATONAH, NY – ecountabl, Inc., the technology company that helps Americans live up to their values in daily life, and CSRHub, a leading provider of corporate social responsibility (CSR) information, announced they have signed a license agreement that facilitates the use of CSRHub’s best-in-class CSR information in ecountabl’s groundbreaking consumer financial technology platform.

“ecountabl is pleased to be working with CSRHub to make corporate social and environmental information accessible and shareable for American consumers,” said Cody Taylor, ecountabl co-founder. “CSRHub offers an incredible database of independent and trustworthy information that we can use to help individuals make purchasing decisions that align with their values.”

ecountabl will use CSRHub data as an input to its revolutionary ecountabl Score, a consumer metric that helps individuals identify companies and brands that share their personal values in areas like climate protection, gender equality, racial diversity, human rights, and fair worker treatment. The ecountabl Score connects directly with users’ personal financial accounts through the ecountabl mobile app.

”CSRHub is delighted to provide information to ecountabl’s great service to drive more socially responsible consumer decisions,” said Cynthia Figge, CSRHub Co-Founder and CEO.

 

About CSRHub

CSRHub, a New York-based certified B Corporation, provides access to one of the world’s broadest and most consistent set of Environment, Social, Governance (ESG) ratings and information on 18,000 companies in 141 countries. 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 products are also available through partners including Bloomberg’s App Store and Open:FactSet.

About ecountabl

ecountabl is a purpose-driven technology company that makes the social and environmental performance of companies accessible and shareable for ordinary Americans. Founded in 2019, we make independent data on thousands of companies available in our mobile app, connectable to personal financial accounts, and shareable on social media. We are a public benefit corporation with a mission to help people live up to their values in daily life. For more information, visit www.ecountabl.com.

 

Press Contact: info@ecountabl.com
Press Contact: csrhub.news@csrhub.com

Source: ecountabl Inc. and CSRHub

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