Sustainalytics’ Impact Metrics Help Advance Investor Reporting on Sustainable Investments
November 12, 2020, Amsterdam – Sustainalytics, a leading global provider of ESG research, ratings and data, today announced the launch of its Impact Metrics. Regulatory initiatives such as the EU Sustainable Finance Action Plan and the growing importance of issues like climate change and diversity are becoming key priorities for institutional and individual investors alike. These priorities are placing more pressure on asset managers and asset owners to demonstrate how ESG-focused strategies can meet sustainability objectives. With Sustainalytics’ Impact Metrics, investors can more systematically monitor, measure and report on the social and environmental impacts of their portfolios.
Investors of all types are not only using ESG data for risk mitigation, but also to determine whether their investments are aligned with creating a more sustainable future. To help drive positive outcomes, investors can also leverage Sustainalytics’ Impact Metrics for product creation purposes, including in the construction of portfolios, funds and indexes with impact objectives. Spanning more than 12,000 companies, the firm’s 40 metrics enable investors to choose specific impact themes and the Sustainable Development Goals (SDGs) to align to their investment strategy.
Sustainalytics’ Impact Metrics are based on its new Impact Framework, which covers six impact themes that correspond to one or more of the Sustainable Development Goals (SDGs). The framework comprises two social areas and three environmental areas, including climate action, healthy ecosystems, resource security, basic needs, and human development. In addition, the framework includes a baseline theme, which addresses the indirect impacts an entity can have by way of its leadership and contribution to collective efforts. The firm’s Impact Framework can be adapted and used for various sustainability, impact, or disclosure approaches.
“The use of ESG information has evolved rapidly over the last several years, from investors focusing on ESG integration to now demonstrating whether their ESG investments deliver real-world outcomes,” said Megan Wallingford, associate director of Product Strategy and Development at Sustainalytics. “Yet, measuring and reporting on positive and negative ESG outcomes has been difficult to-date given different interpretations on how to assess impact. With our Impact Metrics, we offer a structured set of product and operational metrics backed by a transparent framework that enables investors to understand, monitor, and show the impact of what companies produce and how they conduct their business.”
In addition to Sustainalytics’ Impact Metrics, Sustainalytics offer Sustainable Products Research, which measures the level of company involvement in products and services that meet its framework requirements for 12 thematic areas. To learn more about Sustainalytics’ Impact Solutions, please visit here.