ESG scores and beyond

ETFS Securities
By May 7, 2021 12:08

ESG scores and beyond

A FTSE Russell ESG rating is the culmination of a rigorous process that combines various aspects of an issuer's total Environmental, Social or Governance exposure and performance, into a single score. Whereas the process synthetizes ESG information objectively, a company’s exposure to the Environmental, Social or Governance themes is ultimately driven by its activity. However, while some themes are important to all issuers, and will participate in most of the FTSE Russell’s ESG rating, others will contribute less. With the attention of investors being increasingly focused on sustainability issues, awareness of these ESG ratings characteristics is essential, as it allows the user to have a better overview of their meaning. This paper answers the question “What themes matter most in ESG ratings?”, by explaining the information underpinning FTSE Russell’s ESG rating and identifying the themes which provide the highest contribution to an overall score. 

ETFS Securities
By May 7, 2021 12:08

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