FTSE Russell - ESG Ratings
- Environmental data
- Social data
- Governance data
- Indices/Exchange data
What data do you provide?
FTSE Russell has been an innovator in sustainable investment indexes since the launch in 2001 of the FTSE4Good Index Series - 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, while 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.
For ESG benchmarks, FTSE Russell has the data and expertise to integrate ESG and investment outcomes into a single index solution that meets the client’s needs. This includes achieving broad market returns and index characteristics with improved ESG attributes, integrating ESG into specific factor or smart beta strategies, and selective investments that align with ESG objectives.
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 etc.
Data is collected according to the process below, note that some aspects of this may vary but this forms a general outline:
- 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?
FTSE Russell’s ESG Ratings data is used by asset managers, asset owners, investment consultants, and academic institutions.
A subset of FTSE Russell’s ESG Ratings is also used for the Transition Pathway Initiative, a global initiative led by asset owners and supported by asset managers that assesses companies’ preparedness for the transition to a low-carbon economy.
What is the cost for your data offering?
Please contact FTSE Russell for information on licensing our sustainable investment data and indexes.
EMEA: + 44 (0) 20 7866 1810
North America: +1 866 551 0617
Hong Kong: + 852 2164 3333
Tokyo: + 81 3 3581 2764
Sydney: +61 (0)2 8823 3521
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 each user’s needs.
The ESG Ratings can be accessed through the online data model and include over 4,700 securities in 47 Developed and Emerging markets, comprising the constituents of the FTSE All-World Index, FTSE All-Share 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.
@FTSERussell data and analytics to take ESG from niche to norm. Our ESG Ratings covers thousands of companies across developed and emerging markets globally. Experienced provider of investment data models, ratings, analytics and indexes. #SustainableInvestmentindexes