Best 10 Data Providers for ESG Scoring
As global emphasis on sustainable and ethical investing increases, a poor ESG score can spell disaster for a company’s reputation.
ESG scores are vital for corporates and stakeholders to understand how the organization is being publicly perceived. The investor of 2020 is value-based: companies which ‘greenwash’ or underperform when it comes to sustainability and regulation compliance have seen their stock prices plummet.
But ESG scoring is not a simple calculation. Companies must scrutinize their internal metrics - greenhouse gas emissions, diversity statistics, health and safety regulation. On top of this, ESG scores take financial and CSR reports, media coverage and social media content into account. Using these sources for ESG scoring requires complicated algorithms and extensive audits.
How can corporates calculate their ESG score accurately when the methodology demands so many resources?
ESG and financial market data providers calculate ESG scores so that companies don’t have to. Data providers carry out ESG scoring for thousands of companies using a vast range of sources. They deploy human and artificial intelligence so companies and investors are guaranteed the deepest insights into ethical performance and risk management.
We’ve compiled a list of the 10 best data providers for ESG scoring.
Have a look!
The Best 10 Data Providers for ESG Scoring
Clarity AI is an ESG data provider which aims to make markets and businesses more socially- and environmentally-conscious. They provide ESG scoring data which analyzes not only how companies perform when it comes to sustainability, but also how their decisions have global impact.
FTSE Russell conducts detailed analysis of 14,700 companies to calculate their ESG scores. They measure how much of a company’s revenue comes from ‘green’ products - a key indicator of sustainable and ethical governance. FTSE Russell ESG scoring allows companies to benchmark themselves against global organizations and ensure that they receive positive attention from the media and investors.
Refinitiv’s ESG dataset covers 80% of global market cap and spans 76 countries. The company’s ESG scores are calculated using over 450 criteria, using a methodology which audits all open-source and private information. With 18 years of historical coverage, companies use Refinitiv’s data to track their sustainability performance over time.
MSCI provide ESG scores by leveraging AI and alternative data. They also deploy a team of 185 expert research analysts to gather data points from over 65,000 company directors. MSCI’s methodology means that their ESG scoring is constantly monitored for quality and accuracy.
RepRisk is based in Switzerland and provides ESG data. Their ESG scoring system was born out of credit risk management, and is especially in-depth. RepRisk’s database covers over 140K companies, and supplies information about material ESG risks. This way, companies can ensure they comply with ESG regulations and avoid damage to their reputation and finances.
Institutional Shareholder Services is a leading provider of data for corporate governance and responsible investment. They calculate ESG scores and rank companies accordingly, so that corporate can immediately benchmark their performance against competitors and work to improve their green status and public reputation.
Owl Analytics is a data provider with leading ESG data integrations. The company scrutinizes organizations using both internal and external data sources to identify and removes cases of greenwashing. This gives the user the most accurate ESG score possible, and a greater opportunity for positive social impact.
Akadia is an India-based ESG data provider. The company offers high-quality, granular insights into companies’ ESG performance, including waste disposal, energy consumption and employee health and safety. These metrics are used to calculate comprehensive ESG scores for companies of all sizes.
Arabesque S-Ray is an ESG data provider with access to over 30,000 news sources. Arabesque S-Ray’s ESG scoring methodology uses four distinct sustainability measurements, and is trusted by Deutsche Bank and NYU. Their Company Snapshots service allows organizations to instantly carry out ESG risk assessment and regulation comliance.
Sense Folio provide ESG data. They calculate ESG scores for over 20,000 companies on a daily basis using AI and NLP alongside human intelligence. Sense Folio analzyes social media, news outlets and financial reports to accurately assess how a company’s ethical performance is being received by customers and stakeholders.