S&P Global launched a new proprietary tool designed to assess and evaluate the sustainability practices of companies last week. This metric, the S&P Global Environmental, Social, and Governance (ESG) Scores, captures the sustainability factors of over 7,300 companies, providing investors with a new way to approach investment strategies and opportunities in the future.
S&P developed its metric by referring to the SAM Corporate Sustainability Assessment, which is an annual evaluation of companies’ sustainability efforts. The methodology is also based in the companies’ existing analysis of companies worldwide.
The new ESG Scores will be disseminated through S&P’s data-feed management solution, Xpressfeed. Clients will be able to access this new data along with the other financial data S&P provides through this module.
S&P Global has long worked to develop ESG indexing strategies and set benchmarks for companies in this area. The SAM CSA, for instance, has been an important part of the Dow Jones Sustainability Index and the S&P 500 ESG Index for years.
“The launch of the S&P Global ESG Scores further bolsters S&P Global’s position as the premier resource for ESG data and insights,” President of S&P Global Market Intelligence Martina Cheung said.
S&P Global acquired SAM in January 2020. The data provided by this resource is the basis of the firm’s standards of ESG disclosures. The data will be used to direct ESG research throughout the company.
“For the first time ever, investors will have access to scores based on more than two decades of ESG expertise, a leading methodology centered around financial materiality, and a focus on forward looking sustainability metrics,” Global Head of ESG at S&P Global Evan Greenfeld said. “The appetite for more robust and differentiated ESG insights for investors is increasing, and we are focused on meeting the need for high-quality, actionable ESG solutions.”
The ESG Scores will be a new addition to a suite of S&P’s existing ESG-focused products, including the S&P Global Ratings ESG Evaluation – an analysis of a company’s preparedness to handle ESG-related risk – and the S&P 500 ESG Index, which is used to connect a company’s projects with ESG issues.
S&P also offers analysis of Global Platts Energy Transition Prices and 2 degree scenario planning outlooks, as well as Trucost’s data on carbon dioxide output and other environmental impacts.