FTSE Russell’s ESG Scores and data model allows investors to understand a company’s exposure to, and management of, ESG issues in multiple dimensions.
The ESG Scores are comprised of an overall Score that breaks down into underlying Pillars and Theme Exposures and Scores. The Pillars and Themes are built on over 300 individual indicator assessments that are applied to each company’s unique circumstances.
Helping investors with a need for flexible, data-driven solutions to:
- Assist in managing exposure to ESG aspects
- Meet mandated stewardship requirements
- Integrate ESG data into securities and portfolio analysis
- Implement ESG-aware investment strategies
An ESG score is made of three pillars, Environmental, Social and Governance.
Related Links
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ESG Scores and Data Model Overview
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FTSE Russell ESG Data Model Methodology
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Malaysian ESG scores overview
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ESG Scores and data recalculation policy and guidelines
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AIGCC report: Listed company TCFD disclosure in Asia
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How the TCFD recommendations are incorporated into FTSE Russell’s ESG Scores and data model
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Corporate engagement within sustainable investment: Information for researched companies
Key features
Why use FTSE Russell ESG scores?
The ESG Scores can be accessed through the online data model and includes 8,000 securities in 47 Developed and Emerging markets, comprising the constituents of the FTSE All-World Index, FTSE All-Share Index and Russell 1000® Index.
The data model is designed for customisation by the user to enable the data to be ‘sliced and diced’ to meet each user’s needs.
Scores are calculated using an Exposure-weighted average, meaning that the most material ESG issues are given the most weight when determining a company’s scores.
The ESG Scores and data model has clearly defined rules for assessing and rating companies. The output is a data tool that is quantitative, rather than qualitative, in its company research reports.
The ESG data model is overseen by an independent external committee comprising experts from the investment community, business, NGOs, unions and academia.
The ESG Scores support alignment with the UN Sustainable Development Goals (SDGs). All 17 SDGs are reflected in the 14 Themes under the ESG framework.
Data collection and corporate engagement
- FTSE Russell’s ESG company research relies on publicly disclosed information only. We do not send questionnaires to issuers
- Companies are given access to our web-based research platform (SID) and are afforded around four weeks to review and provide feedback (e.g. additional public information) that could be factored into our analysis
- Sustainable Investment data analysts review this feedback and determine if a change in assessment is warranted
- In addition, we also have an established process for corporate communications. This process enables companies to engage with us directly (using ftse4good@ftserussell.com) to better understand our ESG research process, inputs, outputs and investor use cases
ICMA Code of Conduct for ESG Ratings and Data Products Providers
Following LSEG's endorsement of the Code of Conduct for ESG Ratings and Data Products Providers issued by the International Capital Market Association (ICMA) and International Regulatory Strategy Group (IRSG), LSEG outlines how it complies with each Principle in a statement of compliance. The Code of Conduct, created by the ESG Data and Ratings Working Group, an industry working group formed by the Financial Conduct Authority, represents industry best practices for ESG data and ratings providers and aligns with IOSCO’s recommendations on ESG data and ratings. LSEG played a role in the development of the Code of Conduct as a Co-Chair of the working group.
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