Dow Jones has launched its own set of sustainability data to help investors and asset managers understand company environment, social and governance (ESG) performance and impact, and make sustainable investment decisions.
Components include ESG scores and sentiment for over 6,000 companies rated across 26 sustainability categories, along with industry, category and country scoring.
The scoring model is aligned with the Sustainability Accounting Standards Board (SASB) standards, and uses a uniquely news-driven methodology, combining company-disclosed data with news from thousands of global sources.
They are being published to address rising regulation in order to provide greater transparency about how financial firms are accounting for sustainability risks and integrating ESG into the investment process.
The data sets can be filtered by industry, category and country scoring, with granular data, news signals and scoring weighted for industry relevance.
Initially available via a feed, they were designed for institutional investors to integrate into portfolio management and strategy systems.
The company said the scoring methodology was created by the Wall Street Journal’s editorial team and the data model along with Arabesque S-Ray.
“We’ve seen a significant surge in sustainable investing as the next generation of investors wants their portfolios to have a positive impact on the world in addition to financial gains,” said Joe Cappitelli, general manager of Dow Jones Newswires.
He added, “Financial professionals are looking for a comprehensive view of companies’ ESG practices; however, what they currently find are opaque data sources, lacking in detail and up-to-date information.”
Glenn Hall, editor, Professional News at Dow Jones, added: “We are seeing a wave of new policy and regulatory changes in the sustainable investment space that is driving demand for better data.
As investors navigate these changes and increasingly consider more nonfinancial factors, they need a robust and dynamic way of evaluating how well companies are managing the impact they may have on people and the planet.”
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