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

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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ESG Coverage Is Improving

[fa icon="calendar'] May 10, 2019 10:21:52 AM / by Bahar Gidwani

We recently reviewed the ESG coverage status for the 8,686 companies in the MSCI ACWI (All Country World Index).  The ACWI is a popular benchmark for many investors, because it includes approximately 85% of the global opportunities for equity investment.  We felt it would be useful to see how much ESG information is currently available on the companies on this type of broad index.

CSRHub aggregates ESG data from more than 600 sources.  Each source has a different coverage universe.  By combining these universes, we have been able to offer full or partial ratings on 18,000 companies and know that there is at least some information on another 13,000 companies.

As you can see from the table below, we have reached the point where there is CSRHub ESG data on 95% of the companies and 99% of the “weighted value” in the Index.  5,777 companies (81% of the index weight) have full CSRHub scores (overall rating and scores for Community, Employees, Environment, and Governance factors).  Another 1,116 companies (13%) have partial scores while 1,324 companies (15%) have some data, but not enough yet to allow calculation of a CSRHub rating.

MSCI All Country World Index Analysis

We do not have data on the past components for this Index.  However, we can look at the status for the current companies over the past five years.  (CSRHub data reaches back to 2008.)  As you can see below, there has been a dramatic improvement in the number of companies with ESG data over this time period.

CSRHub ESG Ratings Data More Entities

One benefit of this increase in coverage is that ESG ratings can now be extended to cover corporate bond and high-yield debt portfolios.  In a recent study of one such portfolio, we found full or partial ESG ratings in CSRHub on 1,681 of 1,789 holdings—94% coverage.  It remains difficult to put ESG scores on sovereign and municipal bond issues.  However, we have ratings now on many universities, cities, and states.  We may also be able to impute a rating for a locality, based on the ratings of the companies that are headquartered there.

One of the excuses made for not integrating ESG information into corporate or investor decision-making has been that there are too many gaps in ESG data.  It appears that the hard work of ESG sources around the world are gradually filling in these gaps so that we can create a consistent and holistic view of relative ESG performance for a wide range of entities.

 

Download the full report

 


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 204 million data points from 634 data sources including 10 leading ESG analyst databases. Our patented algorithm aggregates, normalizes, and weights data to rate 18,000 companies in 139 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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A Fresh Resource for ESG-Oriented Financial Advisors

[fa icon="calendar'] Aug 30, 2018 10:10:38 AM / by Bahar Gidwani

One of the gurus of ESG investing has recently launched a new service for financial advisors (FAs) who want to integrate Environment, Social, and Governance (ESG) factors into their investment process.  He has created a site called “Sustainable Investing” and filled it with content about ESG investing.  Those who subscribe (there is a three month free trial option) get a quarterly newsletter and access to some otherwise hidden research reports.

The site’s author is Henry Shilling, who until recently led Moody’s sustainability 

Sustainable Investing

research efforts. I believe there are several reasons it has been difficult for FAs to bring ESG into their work. (Henry was also one of CSRHub’s beta testers and an early subscriber.)  During his time at Moody’s, Mr. Shilling performed several seminal studies that connected ESG factors with corporate long-term financial performance and risk.  I recall taking so many notes during one of his talks at an S-Networks “Summer in the City CSR Investing Summit” that the fellow next to me told me to stop.  My laptop keyboard clicks were making too much noise and he also wanted to hear Henry speak.

  • The available ESG data sets are too expensive for many FAs to afford.
  • ESG data sets are complex and hard for advisors to navigate and understand. They focus on detail over substance and have “holes” in their data that make comparisons difficult.
  • FA clients have personal biases and views that demand client-specific adjustments. The correct portfolio of one client may not fit the needs of an FA’s other clients.
  • Clients have expected (and FAs have promised) that ESG-oriented portfolios will outperform those that do not take corporate social responsibility considerations into account. ESG funds have more or less performed in line with the market—but most of those currently offered have not been around that long.  We have not seen yet an ESG fund show consistent multi-year outperformance.

Henry has stated publicly that he believes investors and their advisors who care about ESG issues should seek to earn only market rate returns.  I agree with him.  He and I both believe that it is possible to construct a market-performing portfolio of investments that reflects a client’s personal values, if one uses a broad enough initial investment universe.  Henry’s new site is an attempt to provide practical advice and tools for implementing these ideas.


Bahar_Gidwani-9Bahar 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 provides access to the world’s largest corporate social responsibility and sustainability ratings and information.  It covers over 18,052+ companies from 135 industries in 133 countries. By aggregating and normalizing the information from 556 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, API partners 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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Peeking Behind the Corporate Curtain With CSRHub’s Cynthia Figge

[fa icon="calendar'] Sep 22, 2017 12:00:00 AM / by CSRHub Blogging

Republished with permission.

On this edition of The Bottom Line podcast, Rick Wartzman talks to CSRHub’s Cynthia Figge.

In the just released interview with Rick Wartzman, Cynthia Figge, CEO of CSRHub, speaks about Why It Makes Sense For Companies To Be Socially Responsible. The Bottom Line podcast puts a spotlight on companies that are advancing social progress, and draws out insights into some of the most pressing issues of our time. You can listen to this dynamic and in-depth conversation on Capital and Mainhere or below.

You can also read about it on Fast Company here.

 

 

bottom line.gif

"Hosted by the Drucker Institute’s Rick Wartzman, the author of four books, The Bottom Line puts a spotlight on companies that are advancing social progress—and those that aren’t.

B
y engaging in lively conversation with top executives and other experts, Rick draws out insights into some of the most pressing issues of our time—all through the lens of what is arguably the most powerful institution in our country: business.

The Bottom Line also features regular commentaries, as well as reported segments by veteran radio journalists. The Bottom Line is a production of Capital & Main."

 

 cynthia_figge-at-Sustainable-Brands-13.jpgCynthia Figge is a forerunner and thought leader in the corporate sustainability movement who co-founded EKOS International in 1996, one of the first consultancies integrating sustainability and corporate strategy. Cynthia is CEO and Cofounder of CSRHub. Cynthia has worked with major organizations including BNSF, Boeing, Coca-Cola, Dow Jones, and REI to help craft sustainability strategy integrated with business. She was an Officer of LIN Broadcasting/McCaw Cellular leading new services development, and started a new “Greenfield” mill with Weyerhaeuser. She serves as Advisor to media and technology companies, and served as President of the Board of Sustainable Seattle. Cynthia has an MBA from Harvard Business School. Cynthia is based in the Seattle area.

CSRHub provides access to the world’s largest corporate social responsibility and sustainability ratings and information.  It covers over 17,400 companies from 135 industries in 133 countries. By aggregating and normalizing the information from 535 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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