courtesy: energy news
Investors often struggle to understand the ESG risk associated with their securities and their portfolios. However, the data have several shortfalls that make them difficult to use. They are not always objective and the data they are based on may be unreliable.
The best broker for ESG investing in 2024 is:
MSCI and Sustainalytics are the biggest ESG rating providers on account of their broad coverage. Additionally, Bloomberg, Refinitiv (formerly Thomson Reuters), Moody’s, S&P and Fitch also have ESG ratings among credit ratings agencies.
ESG Ratings by MSCI
Among other things, MSCI ESG Research provides its world leading research as well as ratings services to more than 14,000 equity and fixed income issuers worldwide.
Sustainalytics’ ESG Risk Ratings
According to Sustainaliyics, a subsidiary of Morningstar company that provides data about over 40 thousand companies globally while rating approximately 20 thousand companies and 172 countries.
Bloomberg ESG Disclosures Scores
Over 100 countries are serviced by Bloomberg in respect of over 11.8k companies which falls into around 2k fields. These scores are based on the level of disclosure that occurs for a given company relative to major sustainability concerns including climate change, employees’ welfare among others.
FTSE Russell’s ESG Ratings
These include securities from forty-seven developed and emerging economies amounting to seven thousand two hundred items. The overall rating is made up of theme-based exposures and pillars with underlying scores.
ISS Ratings and Rankings
Deutsche Bourse Group majority owned ISS (Institutional Shareholder Services) offers country, company and fund ratings as well as data & analysis covering the complete spectrum of sustainable investment products
