For many investors, ESG research providers are instrumental in making ESG investing happen. How do leading institutional investors use external ESG research? And which strengths and weaknesses do they find in that research?
This Talk sheds some light on how ESG research providers are able to deliver ESG ratings on thousands of companies, sometimes on the basis of minimal company data. It highlights the choices that each rating agency has to make to produce those ratings, and how these choices produce different ratings for the same company, depending on the ESG research provider.
Finally, it explores what ESG data could look like a few years from now.