Our View

InfoTrie can help you lower the cost of ESG, positive investing, investment theme identification.

There has been recent commentary that ESG ratings are not sufficiently focused on climate, values and impact, with differing views on their purpose and usefulness. With ESG investing gaining prominence, rising levels of debate are a natural part of its evolution.

In the last decade, InfoTrie has contributed to the creation and analysis of a substantial body of empirical research that highlights the existence of meaningful links between company ESG characteristics and their financial performance. This research has demonstrated that integrating ESG considerations into an investor’s valuation and risk models can improve the accuracy of its financial performance forecasts. This led to the development of a specific type of ESG-focused investing, ESG integration, which aims to assess long-term financial risks and opportunities related to ESG issues for the specific purpose of enhancing long-term risk-adjusted returns.

InfoTrie ESG Ratings are meant to serve specifically this purpose: to help institutional investors understand a company’s exposure to financially relevant ESG risks and opportunities for ESG integration.

Our ESG Ratings are one of many metrics that we produce for over 50,000 companies to help our clients better integrate ESG considerations and climate change in their investment process.

Our clients can use an InfoTrie ESG Rating standalone or alongside additional layers of ESG, climate and impact metrics from InfoTrie or other sources to help inform their decisions in the most appropriate way depending on their investment objectives and desired outcomes. This may combine elements of managing long-term risk, reflecting their values and/or having a positive impact. With over 10 years of experience in objectively measuring and modeling ESG characteristics and developing solutions for many of the world’s most sophisticated investors, we know that one size does not fit all. 

Sample Usage

  • Positive Screening: Investing in companies demonstrating positive ESG performance relative to peers. 
  • ESG Integration: The inclusion of ESG factors alongside financial analysis of assets by investment managers. 
  • Impact Investing: Investing in companies, organisations and funds which have the commercial purpose of solving social or environmental problems.
  • Active Ownership: Engaging with companies on ESG concerns that affect their long-term growth, and using shareholder power to positively influence corporate behaviour.

Sample Keywords Used in Taxonomy

Environment

  • “carbon emissions”,
  • “energy efficiency”,
  • “carbon footprint”,
  • “environmental impact”,
  • “climate change”,
  • “waste management”,
  • “disposal method”,
  • “pollution”,
  • “enviromental compliance”,
  • “renewable energy”

Social 

  • “labor management”,
  • “health and safety”,
  • “human capital development”,
  • “supply chain labor standards”,
  • “product safety”,
  • “chemical safety”,
  • “data security”,
  • “responsible investment”,
  • “health risk”,
  • “controversial sourcing”,
  • “job cuts”,
  • “downsizing”,
  • “employee turnover”

Governance 

  • “business ethics”,
  • “anti-competitive practices”,
  • “minimum wage”,
  • “corruption”,
  • “equal opportunity”,
  • “employee benefits”,
  • “tax payment”,
  • “board diversity”,
  • “conflict of interest”,
  • “sustainable compensation”,
  • “human right”,
  • “discrimination”