Environmental, Social and Corporate Governance - ESG

Summary

In today’s world of globalization and interdependence and in times of financial crisis, issues such as climate change, biodiversity, human rights, “licence to operate,” business ethics and corporate governance are at the forefront of public and political attention.

How companies respond to these issues is becoming as important as traditional financial metrics when evaluating corporate performance, therefore playing a more central role in investors’ decision-making efforts to identify long-term opportunities and risks for companies. Now for the first time, environmental, social and governance (ESG) factors can be easily integrated into portfolio analysis, equity research, screening or quantitative analysis.

The information is manually collected and audited by our ESG specialists based on publicly available sources such as company websites, annual reports and corporate social responsibility (CSR) reports.

Features and Benefits

Thomson Reuters provides ESG data on over to 5,000 public companies.

400+ ESG data points and 100+ ESG analytics going back to 2002.

Over 17 years of history provided for Officers and Directors content covering public as well as private companies

Identify companies that demonstrate an active, positive contribution to sustainable development

Incorporate ESG issues into your financial analysis

Find and invest in companies with active corporate governance

Screen and avoid companies not meeting socially responsible criteria

Additional Content Info

Global Coverage

Thomson Reuters provides ESG data on over 5,000 listed companies including many of the primary, global and some regional indices like MSCI World, MSCI Europe, STOXX 600, NASDAQ 100, Russell 1000, S&P 500, FTSE 100, ASX 300 and MSCI Emerging Market.
In addition, Thomson Reuters offers takeover defense profiles on 10,000+ public companies with nearly 12,000 Poison Pill “Events”.

Depth and History

Thomson Reuters has in-depth coverage across 400+ ESG data points and 100+ ESG analytics back to 2002. We also provide 17+ years of history on over 1.8 million officers and director for over 80,000 public companies and over 1.1 million officers and directors for 135,000 private companies.

Timeliness and Quality

Our processes are designed to ensure the highest data quality levels with stringent quality control and methodology. Every company update goes through different levels of manual validations. In parallel, all data goes through automatic checks – looking for logical relationships between the data points, consistency across years and expected ranges of the quantitative data.

Standardized and As Reported Data

Thomson Reuters offers standardized and comparable ESG data thus solving one of the greatest challenges in using this information. Our data analysts capture the data as reported by the companies together with the link back to source and then standardize the values in common units across all companies. Full detailed transparency is provided by detailed information links to each data point.

Value Add Across Workflows

Professional investors use ESG data to define a wide range of responsible investment strategies and integrate it into their traditional investment analysis. Corporate executives (e.g. CSR and IR managers) use the content to benchmark their own performance against peers and track relevant news. Quantitative analysts use the ESG data within the Quantitative Analytics solution to identify a new range of signals. Issues such as climate change, executive remuneration and employee rights are becoming as important as traditional metrics for companies and investors, that is why having access to an objective and comparable database and analysis tools is so important.

Professional investors can:

  • Implement a full range of responsible investment strategies, including negative screening, best-in-class analysis, compliance and risk monitoring, engagement and integration.
  • Drive down research costs by delivering systematic, verified and integrated information.
  • Increase revenue by enhancing investment research capabilities and empowering new, innovative financial products incorporating ESG aspects

Corporate Services Executives can:

  • Reduce risk by tracking, managing and benchmarking of ESG policies and practices.
  • Enhance corporate governance with access to objective and transparent information.
  • Stay current on industry changes or issues by monitoring ESG-related news.
  • Expand accountability, transparency and trust to increase liquidity and achieve a fair share price.

Thomson Reuters Corporate Responsibility Indices (TRCRI)

Track the performance of companies with superior ratings for environmental, social and governance practices.
Developed jointly with S-Network Global Indexes, and leveraging the Thomson Reuters ESG database, the Thomson Reuters Corporate Responsibility Indices (TRCRI) offer an objective and transparent, rules-based benchmarking solution for measuring ESG performance.

Unlike the majority of ESG indices, the indices mirror the performance of major global benchmarks via companies that have substantially higher than average ESG ratings.

The indices represent a comprehensive benchmarking system for CSR investors. The full transparency of both index and associated ratings methodologies, together with broad-based distribution of index data, make the indices understandable and accessible to all types of users.

ESG Metrics Covering all Sustainability Themes

Sample Environmental Measures Sample Social Measures Sample Corporate Governance Measures
Biodiversity Impact Reduction Improvement Tools Business Ethics Board Member Affiliations
Targets Emissions Customer Satisfaction Policy Board Size
CO2 Equivalents Emission Total Employee Satisfaction Policy Board Independence
Estimated CO2 Equivalents Emission Total Quality Management Systems (ISO 9000) Policy Board Diversity
Carbon Offsets/Credits Policy Child Labor Policy Board Experience
Waste Total Supply Chain Health & Safety Training Board Meeting Attendance Average
Non Hazardous Waste Trade Union Representation Board Cultural Diversity
Hazardous Waste Turnover of Employees Female on Board
Waste Recycling Ratio Health & Safety Policy Highest Remuneration Package
Water Pollutant Emissions Total Injury Rate Board Member Compensation
e-Waste Reduction Lost Time Injury Rate Audit Committee Independence
Environmental Expenditures Employee/Contractor Fatalities Global Compact
Policy Energy Efficiency Lost Working Days CEO-Chairman Separation
Energy Use Total HIV/AIDS Program Compensation Committee Independence
Renewable Energy Use Accidents Total Anti-Takeover Devices
Green Buildings Average Training Hours Policy Equal Voting Right
Policy Water Efficiency Training Costs Total Voting Cap Percentage
Water Withdrawal Total Management Training Shareholders Vote on Executive Pay
Water Recycled Policy Diversity and Opportunity Veto Power or Golden Share
Environmental Supply Chain Management Women Employees Classified Board Structure
Environmental Management Systems (ISO 14000) Women Managers Staggered Board Structure
Environmental Products Flexible Working Schemes CSR Sustainability Committee
Environmental R&D Expenditures Day Care Services CSR Sustainability Report Global Activities
Eco-Design Products Human Rights Policy CSR Sustainability External Audit
Water Technologies Donations Total GRI Report Guidelines
Hybrid Vehicles

Product Delivery

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with more to come in the future.

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