Sustainable investments take into consideration environmental, social and governance (ESG) factors. What is a company’s carbon footprint? How diverse is its management team? What efforts does it make to promote gender equality in the workforce? All of these – and so many more – are questions that ESG attempts to answer for investors.
As a national non-profit for shareholder advocacy, As You Sow offers one of the most comprehensive SRI/ESG tools available to investors. On its site InvestYourValues.org, investors can evaluate the social responsibility of 3,000 mutual funds and ETFs, from their fossil fuel impact to gender equality and racial justice through the companies’ relationships with private prisons.
If you’re interested in sustainable investing, you should know about US SIF: The Forum for Sustainable and Responsible Investment. The Forum consists of financial institutions such as broker-dealers and investment management firms, as well as individual financial advisors, community development organizations and non-profit associations, all of whom are working together to advance long-term sustainable investment practices.
Sustainable investing isn’t just morally responsible; it can also be financially prudent. Companies that don’t have strong ESG practices can be exposed to greater environmental, government and social risks.
Morningstar’s ESG Screener lets you search for sustainable mutual funds based on your chosen criteria. Using this ESG tool – which is supported by company-level data gathered from Morningstar-owned Sustainalytics – you can search for funds by their name or ticker.
MSCI’s free ESG Ratings & Climate Risk Search Tool lets you search across the more than 2,900 constituents of the MSCI ACWI Index, the investment management firm’s flagship global equity index. Type in a company name or ticker symbol to see how it aligns with global climate targets and its ESG risks and opportunities.
For investors looking to conduct research on ESG ETFs, one of the best places to go is ETF.com. The ESG tab in its ETF Finder gives MSCI ESG ratings data for each fund based on its exposure to several factors, including carbon emissions, sustainability impact and governance risks.
S&P Global released its company ESG Scores to the public in February 2021. This ESG tool has been the basis for selecting companies for the Dow Jones Sustainability Index (DJSI). Now all investors can go to the S&P Global website to view ESG data on 9,200 companies, and each firm is evaluated across roughly 1,000 data points.
Refinitiv, a subsidiary of the London Stock Exchange Group, is a global provider of financial markets and company data, including ESG company scores.
Individual brokerage firms also provide SRI and ESG tools and resources. Some are only available to clients, but others, such as Charles Schwab, make their search tools available to everyone.The Nasdaq Stock Market is a stock exchange based in New York City that is ranked second in terms of market capitalization of shares traded among all stock markets. It ranks second out of the top ten stock exchanges by market capitalization of trading volumes, behind the NYSE.
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To summarize the key points in this article, ESG tools are becoming more accessible to help individual investors make well-informed decisions. Specialist companies are making strides in providing qualitative analysis on ESG factors alongside the financial performance of corporations, funds or individuals securities. An inflation in benchmarking is also emerging where certain metrics are being adopted by traditional asset managers to provide enhanced standards for social responsibility.
All of the sites listed in this article have different criteria and algorithms. Some of the companies have a large range while others focus on just one aspect. In addition, the calculations behind these tools vary from user to user based on how it is being used. ESG’s can be used to determine if a company has an overall positive or negative effect on the world at large, but other factors should be taken into account to determine how one would want their investment dollars to be used.
The article was written in a way that focused on individual investors and the specific tools they could use. It is, however, a good starting point for people who are new to SRI and want an assortment of resources to look through.
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ESG: The New Way of Doing Business in New York, NY
Business and organizational sustainability is a complex issue in New York, with many stakeholders and perspectives. It’s also an area where the stakes are high – if we don’t get it right, there will be dire consequences for our communities and the planet.
The good news is that more investors are taking notice of ESG issues when they invest in New York companies and organizations. In fact, over the past decade institutional investors have been increasingly incorporating Environmental, Social and Governance factors into their investment decisions. And soon it will be impossible to win any RFP’s without it.
We want everyone (not just big institutions in New York) to be able to incorporate ESG-related risk into their actions because Companies that don’t adapt to these changes will not survive. This change has many companies in New York scrambling to figure out how they can stay competitive and be profitable while also contributing to a better future.
ESG The Report is one solution that helps businesses in New York find their niche in this new landscape by providing information on risks and opportunities related to environmental, social and governance factors affecting them today. Our report offers insights into what investors are looking for from companies in New York and around the globe.
ESG Frameworks provide investors with insight into how companies are performing in terms of corporate governance, social issues, labour standards and environmental impact. Ask about our ESG Frameworks package to help you get started on making your company, department or organization diverse, equitable and inclusive for all stakeholders.