ESG Investor’s weekly round-up of news on technology and tools in the sustainable investing sector.
Fitch Ratings has assigned ESG Vulnerability Scores to about 100 utilities, mostly based in EMEA, in a new report. The scores assess the relative vulnerability of entities’ creditworthiness to a stress scenario incorporating potential credit risks arising ESG-related developments up to 2050, notably transition to a low-carbon economy. The utilities’ scores largely range between 15 and 60 in the period to 2050, on a scale of zero to 100, suggesting almost all are actively addressing ESG issues and the energy transition. Thermal generation generally represents a limited share of integrated utilities’ EBITDA, while the contribution from activities with very low ESG vulnerability, such as renewables or electricity transmission and distribution, is increasing
S&P Global has launched the SFDR Data Solution to enable market participants to meet disclosure requirements under Europe’s Sustainable Finance Disclosure Regulation (SFDR) and report on Principal Adverse Impact Indicators (PAIs). The SFDR Data Solution will draw on a wide range of S&P Global ESG datasets to identify the sustainability risks associated with investments, including Trucost Environmental data, Sovereign Carbon Exposure, Physical Risk, S&P Global ESG Scores, and other datasets from the S&P Global Capital IQ platform. “Leveraging the dataset we have built for SFDR, investors will be able to access a comprehensive range of robust and high quality ESG data to identify the sustainability risks of their investments and disclose in line with the SFDR requirements,” said Steven Bullock, Global Head of ESG Product Innovation and Analytics at S&P Global.
Financial and corporate research platform provider Sentieo has announced that Sustainalytics’ ESG Risk Ratings reports are now available on Sentieo’s platform. Investors using Sentieo can access more than 12,500 reports that identify and measure a wide range of ESG-related information, such as ESG issue analysis and ratings, and event scores that could have an impact on corporates’ enterprise value. “With Sustainalytics ESG research and ratings integrated into Sentieo’s AI-powered research platform, investors can identify and understand the ESG risk factors of their portfolio companies. We look forward to working with the team at Sentieo as they roll out our ESG research, ratings, and data to the market,” said Shila Wattamwar, Sustainalytics’ Executive Director of Client Relations.
State Street Corporation has announced it intends to incorporate an ESG-aware commingled cash collateral reinvestment strategy into its Agency Lending Programme. Partnering with State Street Global Advisors, the asset manager arm of the corporation, the strategy will adopt a proprietary ESG scoring system which will inform investment decisions. Currently, the strategy is only available to retirement plan clients participating in the lending programme. The bank recently enhanced its ESG Solutions and ESG Risk Analytics capabilities, allowing clients to address new global regulatory reporting requirements through a single platform. “The continued rise in interest in ESG principles across markets underscores client appetite for their securities lending strategies to work in synergy with their ESG strategies. This move builds on State Street’s commitment to leadership and innovation in applying ESG principles to cash reinvestment for securities lending,” said Nadine Chakar, Head of Global Markets at State Street Global Markets.
Scientific Beta launched a series of climate indices designed to translate companies’ climate performance and alignment engagement into portfolio decisions, thus helping investors to achieve real-world emissions reductions. Unlike indices which combine financial and climate criteria, either as tilts applied to reference cap weights, or of carbon intensity score optimisation under tracking error constraints, the Climate Impact Consistent Indices (CICI) make stock weights depend solely on their climate performance. By putting their money where their mouths are, investors bolster the potential for successful engagement,” said CEO Noël Amenc. Established by EDHEC-Risk Institute, Scientific Beta is a platform focused on helping investors understand and invest in advanced factor and ESG/climate equity strategies.