FTSE Russell an LSEG business - ESG Ratings
- Environmental data
- Governance data
- Indices/Exchange data
- Social data
Brief description of the data offering
FTSE Russell has been a leader in sustainable investment indexes since the launch of the FTSE4Good Index Series in 2001 - marking 20 years of innovation as one of the longest running global ESG index series. FTSE Russell maintains two core sustainable investment data models:
- The ESG Ratings and data model assesses listed companies on their operational ESG risks and performance
- The Green Revenues data model classifies and measures company revenue exposure to products that deliver environmental solutions
By splitting our data model into these two dimensions users can determine more specifically whether to target ESG issues related to (operational) risk or (product) opportunities.
FTSE Russell’s indexes combine data and expertise to apply ESG and investment thinking to solutions that meet client needs. This includes achieving broad market returns and more precise exposures with improved ESG attributes, integrating ESG into specific factor, smart beta and other selective strategies that align with ESG objectives.
The data offers solutions for:
- Carbon footprinting
- Climate scenario analysis
- Environmental impact analysis and insight
- Investment decisions and portfolio insight
- Nature-based information
- Nature-based information: Biodiversity
- Nature-based information: Land use
- Nature-based information: Oceans
- Nature-based information: Water
- Reporting: CSRD
- Reporting: SFDR
- Reporting: TCFD
- Reporting: UN SDGs
- Social impact analysis and insight
Where and how do you source your data?
FTSE Russell's ESG Ratings data relies upon publicly disclosed information (see detailed process below). Our primary sources of data are reports, and other disclosures, from companies. However, we also supplement this data with other sources, such as governments and NGOs.
Data is collected according to the following general process:
- An analyst collects information using documents made publicly available by the company to determine its operational and geographical exposure;
- A company’s exposure is cross-referenced with a rules-based methodology to determine the applicability of ESG indicators. An analyst uses publicly available documents to assess a company against applicable indicators;
- The company is contacted and provided with an opportunity to highlight other public information that the analyst should consider. Where this feedback is found to highlight data that is more relevant to the assessment, this is incorporated by the analyst and the assessment finalized;
- A rules-based, transparent calculation methodology is used to determine the scores across four levels of data.
The ESG data model is overseen by an independent external committee comprising experts from the investment community, business, NGOs, unions and academia. Companies are researched annually and ESG Ratings are updated on a bi-annual basis in June and November.
Who are the data users?
- Financial institutions
- Asset managers
- Asset owners
- Investment consultants
- Academic institutions
What is the cost for your data offering?
What are the key attributes that differentiates the data you offer?
FTSE Russell’s ESG Ratings data has a number of unique benefits, including:
Flexibility and customization
The data model is designed for customization by the user to enable the data to be ‘sliced and diced’ to meet a variety of user needs.
The ESG Ratings can be accessed through the online data model, which includes over 7,200 securities in 47 Developed and Emerging markets, including the constituents of our flagship global and US equity indexes — FTSE All-World Index and Russell 1000® Index.
Emphasis on materiality
Ratings are calculated using an Exposure-weighted average, meaning that the most material ESG issues are given the most weight when determining a company’s scores.
Precise rules and focus on data
The ESG Ratings and data model has clearly defined rules for assessing and rating companies. The output is a data tool that is quantitative, rather than qualitative company research reports.
Objective and strong governance
The ESG data model is overseen by an independent external committee comprising experts from the investment community, business, NGOs, unions and academia.
Sustainable Development Goals aligned
The ESG Ratings support alignment with the UN Sustainable Development Goals (SDGs). All 17 SDGs are reflected in the 14 Themes under the ESG framework.
Access #ESG ratings for thousands of companies across developed and emerging markets globally. @FTSERussell is an experienced provider of #SusainableInvestment data models, analytics and indexes. https://refini.tv/3MmMSQDIMAGE – FTSE ESG