S&P Global has announced the launch of its S&P Global environmental, social, and governance (ESG) Scores with coverage of more than 7,300 companies, representing 95% of global market capitalization.
S&P Global ESG Scores are based on the globally recognized SAM Corporate Sustainability Assessment (CSA) – an annual evaluation of companies’ sustainability practices. The scores will be made available to the investment community through S&P Global Market Intelligence’s data feed management solution, called Xpressfeed. This will allow investors to bring S&P Global ESG Scores together with more than 200 other datasets, including point-in-time financials, Trucost Environmental Data, Panjiva Supply Chain Intelligence, people data, ownership, corporate relationship, key developments, and more.
S&P states that its Global ESG Scores provide a new tool to address growing market demand to integrate ESG factors into corporate investment and business strategies. They are derived from a methodology developed over 20 years from an investor practitioner’s perspective and are based on engagements with corporates across the globe.
ESG has become an important benchmark as of late when it comes to investing. Early this year, it was reported that funds with “above average” or “high” sustainability ratings outperformed comparable funds with lower ratings in sustainability. That was according to Barron’s fourth annual ranking of ESG investing. Of the 189 funds that met the ESG criteria in 2019, 41% outperformed the S&P 500 index for the year. That’s compared to just 29% of big-cap equity funds overall that beat the index, Barron’s reported.