By using ESG (Environmental, Social and Governance) reports you can analyse portfolios based on their sustainability criteria and social impact.
Sustainability, social responsibility or good corporate governance is of growing importance to investors. Thus financial companies, such as banks, asset managers etc. have seen themselves forced to react.
Investors want to receive some background information on the companies in which they’ve invested their money. Based on their ESG criteria, investors can now analyse various portfolios from different companies.
There are various ESG-rating agencies on the market which compare different companies’ sustainability. ESG-rating-agencies classify companies according to various sustainability criteria and evaluate them using a scoring model. Each rating agency has its own scoring model to measure sustainability, e.g. 0 to 10 or 0-100.
The resulting values can then be compared to those of other companies or a benchmark, e.g. a classic benchmark or a sustainable benchmark. Moreover, important results, such as particularly sustainable companies in the portfolio, can be highlighted. This allows companies to use reports as a marketing tool.
It gives investors an easier insight into the various companies in their portfolio and enables them to make informed decisions on how to invest their money.
Additionally, ESG-Reporting provides an insight into the future of companies and shows, for example, prospects of success or long-term risks.
At the moment the European Union is still working on regulations regarding ESG-Reporting.
To receive more information about the current status or our individualised ESG-Reporting solutions, feel free to contact us.
If you would like to know more about Anevis Solutions and our service, feel free to contact us we would be happy to work with you.
If you’d like to have future articles delivered conveniently to your inbox, please sign up for our newsletter.