Dow Jones, the eminent global financial news and data provider, recently launched its sustainability data set for asset managers. The purpose of the launch is to help the financial community to understand the impact of a company’s Environmental, Social and Governance (‘’ESG’’) practices.
The data set shows sustainability scores for more than 6,000 publicly traded companies and includes Industry, Category and Country Scoring.
As part of its methodology, Dow Jones uses a proprietary model which captures a large amount of information about environmental, social and governance elements of the ESG concept. The information is intended to help investors build their ESG concepts and be more transparent in their non-financial reports.
The model which Dow Jones uses for scoring is aligned with the Sustainability Accounting Standards Board (SASB) Standards, covering five sustainability dimensions and 26 categories. The score provides an overall picture of a company’s sustainable performance, and this is complemented by daily analysis of media coverage that gives out an independent view of a company within these 26 categories.
Glenn Hall, Editor, Professional News at Dow Jones, stated:
“We are seeing a wave of new policy and regulatory changes in the sustainable investment space that is driving demand for better data. As investors navigate these changes and increasingly consider more nonfinancial factors, they need a robust and dynamic way of evaluating how well companies are managing the impact they may have on people and the planet. Our vast news and data offering gives asset managers the facts and insights they need to more effectively manage their portfolios and stay ahead of new regulatory requirements.”
Sustainable investing is extremely important to the next generation of investors as they want to achieve financial returns and have a positive influence on the world. The new model introduces a highly innovative approach and relies on a richer and more current data set.
Author: Milica Novakovic
