With the attention of investors being increasingly focused on sustainability issues, awareness of Environmental, Social and Governance ratings characteristics is essential, as it enables a better overview of their meaning.

This paper answers the question, “What themes matter most in ESG ratings?” It explains the information that underpins FTSE Russell’s ESG ratings and identifies the themes that provide the highest contribution to an overall score.

This paper also:

  • Provides an overview of the FTSE Russell’s ESG dataset and rating methodology
  • Measures the ESG themes’ individual contributions to the overall ESG performance
  • Distinguishes the most contributing themes by industry group
  • Proposes approaches on how best to use the various themes’ identified contributions