ESGSIGNALS™

ESGSignals_Logo_01_061920

What is ESG?

We will walk you through the universe of Environmental, Social and Governance Investing.

Slide3

Do you know why current ESG ratings are NOT working?

 

  • Unlike credit ratings provided by S&P, Moody’s etc. ESG scores are poorly correlated with each other with ESG-rating firms not being able to agree about which companies are good or bad
  • The scoring systems sometimes measure the wrong things and rely on patchy, out-of-date figures. ESG Ratings are issued on a pass/fail basis which provide no real insights on ESG issues.
  • Firms who are better able to afford disclosure tend to get better ESG scores. However, even when figures are disclosed, they may be too out-dated to be useful.  
  • At present only half the 1,700-odd companies in the MSCI world index reveal their carbon emissions. And those who do not, are penalized for non-disclosure - with strange results.
Slide5

Investors and asset owners are demanding an objective source on ESG Ratings that is:

  • Up-to-date
  • Independent
  • Proactive
  • Verified

Investors are holding companies responsible for their long-term impact on the environment and community while expecting to make better long-term returns from their investments

Slide20

ESGSignals™ Produces

Weekly measurements for each location:

  • Land usage (perimeter of property, construction)
  • Environmental impact (air quality, pollutants, emissions)
  • Employment (employee cars)
  • Clean energy (Renewable energy project progress)
  • Production and raw materials usage (semi-trailer trucks, rail cars, stockpiles, products)

ESGSignals™ Value Propositions

Asset Managers Asset Owners
  • Risk/Return Assessment in Portfolio Creation
  • Assess new Investment Opportunities based on the ESG company’s ESG performance
  • Portfolio Analysis
  • Determination of Investment Strategy and Investment Policy (Allows effective ESG integration throughout the organization)
  • Enables to oversee and monitor investment managers and others
  • Derive timely insights on long term global trends that shape the investment decisions
  • Benchmark ESG Performance at different levels
  • Understand drivers of ESG performance for each type of asset

Quant Managers (Ratings, Models, Metric Providers)

Fixed Income Investors
  • Provides accurate and comparable data on diverse range of ESG Metrics to understand correlations of financial performance with ESG performance
  • Provides historical data on metrics to understand the correlations that can generate alpha
  • Integrate ESG metric data to Risk management strategies to determine more informed Risk Scores/Ratings
  • Creation of new indices to solely reflect the ESG Risks in companies

 

  • Helps to gain a better understanding on how issuers are managing or planning to manage ESG Risks
  • Allows to influence  through advisory on how issuers manage exposure to major risks
  • Enables to identify and measure credit risks

Issuers

  • Identify the risks and opportunities in the respective universe by observing patterns of fluctuations in several dimensions
  • Enables enhanced company disclosures with lower perceived risk
  • Enables alignment of company strategy to regulatory requirements

 

 

Slide8
Slide11
Slide13
Slide14
Slide22

For in-depth Discussions Contact:

Kirti Khanduja

kirti@rsmetrics.com 

+1 (917) 477 7004

The above references and opinions are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

Request More Information