Refinitiv Launches ESG Scoring for Funds
The global data provider debuts scores for more than 19,000 portfolios representing $15.7 trillion based on environmental, social and governance factors.
The «Lipper Fund ESG Scores» will combine Refinitv’s scoring methodology with Lipper's universe of 330,000 fund share classes and ESG coverage on over 9,000 companies (80 percent of global market capitalization).
Refinitv’s scoring methodology makes assesses funds based on 10 main themes, including emissions, environmental product innovation, diversity and inclusion, human rights and shareholders, against publicly reported data from the constituents within.
«ESG scores are a uniquely effective way to assess performance across industries, factoring in issues such as materiality and transparency stimulation, and serve as an objective and impartial assessment of the importance of each ESG theme to different industries,» said Refinitiv CEO David Craig in a statement.
«Smart Business Decision»
«Even as the world addresses the challenges of COVID-19, climate change remains one of the largest global issues impacting communities, food supplies, biodiversity and economies,» Craig said, underlining that the issue of sustainable investing has extended beyond just a ‘feel-good’ effect.
In fact, the recent market bout in March and April could prove to be an effective benchmark for ESG investing under market stress when ESG versions of the S&P 500, Dow Jones and MSCI World indices all outperformed their traditional counterparts.
«It has become imperative for financial markets to address [these issues] so investors can direct funds to transitionary projects and away from high carbon and carbon-equivalent industries, and to meet an increasing number of regulatory mandates,» Craig added. «Sustainable finance isn’t just a political or social choice — it’s a smart business decision.»
