Environmental, social and governance (ESG) is the talk of company boards at the moment as it becomes a critical enabler of investment. As firms look to expand their businesses and target more sustainable markets or developments, making the necessary changes requires reliable ESG data that can be applied to well-understood and implemented into business processes.
Much of the investment landscape is now centred around companies’ sustainability strategies, including ESG scores, and hold various applications in the financial and risk management professions. Refinitiv, an America-based global research provider—a subsidiary of the London Stock Exchange (LSE) Group with a focus on financial market data and infrastructure, supplies an invaluable service that covers various metrics of ESG, from environmental data like emissions and resource consumption to social aspects, such as human rights, sourcing, and ethical workplace practices, as well as management and shareholder activity as parts of governance.
“The ESG footprint of a company is no longer a niche consideration for investors or indeed wider stakeholders, such as employees, regulators, consumers, policymakers, and society at large,” says Leon Saunders Calvert, Head of Sustainable Investing, Lipper and I&A Insights at Refinitiv.
Data analysis forms an ESG score
An ESG score or rating is a numerical representation of a firm’s sustainability performance. Required by more and more investors, the ESG score works like a transparency tool to encourage companies to improve their performance, alongside other aspects, to receive financial support.
The data behind ESG scores allows asset managers to prioritise investments and managed funds. Wealth managers can use the information as insights to report back to their clients. Beyond the financial actions, risk officers evaluate the data to assess sustainability within supply chains and non-financial institutions use it competitively, by gaining a better view of their businesses alongside competitors.
Refinitiv enables easy access to ESG data
So, where do businesses go to find this data? Refinitiv’s financial market research can be accessed via its website or through its app, which can be linked to smart devices, such as an Alexa-enabled device or Google Home smart speaker. Questions about sustainability and ESG reporting are also addressed on its ESG podcast and accessed through other products linked to a desktop or a data feed.