As previously seen on Skytop Strategies and published with permission.

Back in 2016, we published an article in Reuters that highlighted the low correlation between MSCI and Sustainalytics ratings. For the S&P 1200 (a well-studied group of companies), there was only a 32% correlation between the ESG ratings from these two major data sources.

Sustainalytics VS MSCI in 2016

As previously seen on Skytop Strategies, published with permission.

How to Globalize ESG Data

We’ve globalized culture (films, books, TV series) and supply chains. We’ve shared viruses and vaccines. We must now figure out how to globalize ESG data.

We recently added a new source into CSRHub’s consensus ESG ratings. It is SIGWATCH, a UK-based group that observes how environmental, human and animal rights, and consumer activists are driving current and emerging issues and their impact on individual corporations and brands. This source touches more than 4,000 of the companies CSRHub tracks.

The researchers at StockSnips have been transforming unstructured data into financial sentiment insights for several years. Their AI / ML (Artificial Intelligence / Machine Learning) based system reads thousands of articles and tags the relevant snippets to derive a quantified investor sentiment measure that could drive stock performance. StockSnips has now developed an ESG (Environment, Social, and Governance) signal leveraging the platform used for its Financial Media Sentiment. We have begun adding this data set into CSRHub’s consensus measure of entity ESG performance.