What is ESG?
We will walk you through the universe of Environmental, Social and Governance Investing.
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- The scoring systems sometimes measure the wrong things and rely on patchy, out-of-date figures.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.
Investors and asset owners are demanding an objective source on ESG Ratings that is:
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
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|
Quant Managers (Ratings, Models, Metric Providers)
|Fixed Income Investors|
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