ESG Ratings

Measuring Environmental, Social, and Governance risk and performance on 7,200 securities across 47 Developed and Emerging markets

Overview

FTSE Russell’s ESG Ratings and data model allows investors to understand a company’s exposure to, and management of, ESG issues in multiple dimensions. The ESG Ratings are comprised of an overall Rating that breaks down into underlying Pillar and Theme Exposures and Scores. The Pillars and Themes are built on over 300 individual indicator assessments that are applied to each company’s unique circumstances.

Content and Features

Comprehensive
The ESG Ratings can be accessed through the online data model and includes 7,200 securities in 47 Developed and Emerging markets, comprising the constituents of the FTSE All-World Index, FTSE All-Share Index and Russell 1000® Index.

Flexibility and customization
The data model is designed for customization by the user to enable the data to be ‘sliced and diced’ to meet each user’s needs.

Emphasis on materiality
Ratings are calculated using an Exposure-weighted average, meaning that the most material ESG issues are given the most weight when determining a company’s scores.

Precise rules and focus on data
The ESG Ratings and data model has clearly defined rules for assessing and rating companies. The output is a data tool that is quantitative, rather than qualitative company research reports.

Objective and strong governance
The ESG data model is overseen by an independent external committee comprising experts from the investment community, business, NGOs, unions and academia.

Sustainable Development Goals aligned
The ESG Ratings support alignment with the UN Sustainable Development Goals (SDGs). All 17 SDGs are reflected in the 14 Themes under the ESG framework .

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Benefits

  • Assist in managing exposure to ESG aspects
  • Meet mandated stewardship requirements
  • Integrate ESG data into securities and portfolio analysis
  • Implement ESG-aware investment strategies

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