State Street has improved its ESGX platform to allow investors to take a closer look at how ESG-specific factors are impacting their investment portfolios.
The US-based financial group has added data from IdealRatings, MSCI ESG Research, Trucost ESG Analysis and Sustainalytics, which will allow its clients to scrutinise the link between sustainable investment choices and performance, volatility and returns.
“ESG data and reporting is more important than ever,” said Mark McDivitt, head of ESG at State Street Corporation.
“Our ESGX platform strives to provide our global clients with a holistic and integrated view of their holdings to assist them in making more informed investment decisions.”
Part of the upgrade includes the ability to look at the ESG characteristics of corporate bonds in investment portfolios. Clients can now also look at themes such as carbon footprint and carbon intensity of holdings.
“The new suite of ESG data providers recently added to ESGX will offer enhanced granularity particularly around the E of ESG or sustainability risk embedded in our clients’ portfolios,” McDivitt added. “Utilising ESGX to help address new regulatory reporting requirements relating to ESG is also a key objective.”
In announcing the upgrade to the platform, Richard Mattison, chief executive officer of Trucost, now part of S&P Global, said investors have become far more interested in how environmental issues are impacting their investment returns.
He added: “At S&P Global we have seen a rapid increase in demand for environmental and climate risk data and analysis.”