The Report What Is ESG Research?

The Report What Is ESG Research?

Acuity Knowledge Partners ESG Research LLC is an independent provider of ESG data, reports and assessments, based on published methodologies and available to clients on a subscription basis. Founded in 2002, Acuity Knowledge Partners ESG Research provides ESG reporting to more than 84,000 private and public companies in 34 industries worldwide.

Most national and international public (and many private) companies are assessed and assessed on their Environmental, Social and Governance (ESG) performance by various third-party reporting and assessment providers. Environmental, Social and Governance (ESG) criteria are a set of company performance criteria that socially conscious investors use to select potential investments. Environmental, social and governance (ESG) standards help investors find companies that match their values.

Key Points Environmental, social and governance (ESG) standards are an increasingly popular way for investors to evaluate companies they may want to invest in. ESG standards can also help investors avoid companies that may pose greater financial risks due to environmental or other practices. Because ESG reports summarize the qualitative and quantitative benefits of a company’s ESG activities, investors can choose to invest, aligning investments with their values, and preventing the risk of environmental damage, social error or corruption.

As with any disclosure, the purpose of ESG reporting is to shed light on a company’s ESG activities, increasing transparency for investors and inspiring other organizations to do the same. Stakeholders, like investors, use ESG reports to track stakeholder investments. Since ESG has become a priority for both investors and companies, the ESG Score aims to evaluate organizations based on their ESG efforts.

The Bloomberg ESG Disclosure Score is an in-depth study of the corporate governance of more than 5,600 public companies around the world. The ESG Analysis Lab is dedicated to developing reproducible, high-quality academic research and pedagogy to help current and future investors, asset managers and other ESG integrators make informed decisions. This tool provides an overview of academic research on ESG topics so that scientists and investors can better understand the diversity of available materials.

On this map, ESG Investing presents three indicators that provide a first look at the role of women at the national level and perhaps shed some light on gender equality issues (UN Sustainable Development Goal 5). Ratings are calculated using a weighted average of impact, which means that the most important ESG issues carry the most weight in determining a company’s score.

Should the MSCI Group choose to reflect ESG research and ratings in the MSCI GIMI indices, ESG reports could become increasingly important to investors when deciding which companies to invest in. More than three-quarters of fund pickers (77%) say ESG factor analysis is an integral part of a good investment. Seven years ago, nearly half (48%) of institutional investors said ESG serves primarily as a PR8 measure. or IPS (31%).