ESG/Sustainability Analytics & Ratings
Environmental, Social and Governance (ESG) Investing is rapidly expanding due to a growing interest amidst asset managers and other institutional stakeholders to invest in capital that is socially responsible.
Also known as Impact Investing, ESG is premised on the assumption that the long-term growth the financial sector is dependent on the strength of our environment, society and institutional frameworks. The advent of the Novel Corona Virus (Covid-19) blatantly highlighted the impact our public environment and society can have on our market-based economy. It fostered urgent debate about the importance of social capital and investor responsibility.
At Foresight, we believe in the value of ESG Investing when done right, providing ESG-focused services ranging from ESG strategy, data-based diagnostics and risk and quality-based assessments effective fund due diligence. As thought-leaders in ESG analytics, we work with a range of fund managers to ensure that they can optimize social and financial return.
Assessing the quality of ESG funds and measuring impact requires more than just data. That is why at Foresight, we embrace a 360-degree framework that involves quantitative and qualitative methods to truly identify and optimize your impact advantage.
We integrate multiple financial and extra financial data sources to help clients in both equity and bond portfolios make smart decisions regarding sustainability & ESG factors. Our sustainability and impact measurement tools incorporate UN-supported Principles of Responsible Investing (UNPRI) and UN Sustainable Development Goals (SDGs).
We integrate SDG goals into our quality-based assessment framework to examine a fund’s mission alignment and impact. We believe that incorporating SDG goals in our assessment framework ensures that investors can make real-world impact.
Our work with clients ranges from ESG strategy consulting to fund due diligence, ensuring that investors make valuable and return-based impact.
Carbon Risk Analysis
- What is the portfolio’s level of total carbon emissions?
- How does the level of emission compare against a specific benchmark and peers?
- What are the largest contributors and what are the effects of investment allocation and selection decisions on the portfolio’s relative emissions to its benchmark?
- What is the weighted average carbon density of a portfolio and what are the potential carbon-related market and regulatory risks?
Analytical Framework for ESG Integration
Using a range of key decision drivers such as ESG risks, controversial business exposure, product involvement, environmental risks and SDG level impact, our framework provides a 360-degree perspective on constructing a competitive ESG portfolio.
Our framework is guided by unique data-driven research and human-based insights. Our risk-based assessment framework utilizes holdings-based analysis of security-level data. When assessing the quality of funds, we utilize our framework pillars of Mission Intent, Alignment, and Impact. We examine our 4 E’s of Engagement, Elimination, Execution and Evaluation.