Sustainalytics hopes to bring clarity to ESG space with new metrics

By Staff | November 12, 2020 | Last updated on November 12, 2020
1 min read
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Sustainalytics has launched a new set of metrics that were designed to measure whether investments are in line with the sustainable goals of asset managers and investors.

These new Impact Metrics, of which there are 40, can be used to design products and build portfolios as well as help investors “choose specific impact themes” to focus on, a release said.

The six broad themes that are covered are basic needs, climate action, healthy ecosystems, human development, leadership and collaboration, and resource security — and all six correspond with one or more of the United Nations’ 17 Sustainable Development Goals (SDGs).

About the leadership and collaboration theme, Sustainalytics said in a release that it considers that area as “a baseline theme, which addresses the indirect impacts an entity can have by way of its leadership and contribution to collective efforts.”

“Investors of all types are not only using ESG [environmental, social and governance] data for risk mitigation but also to determine whether their investments are aligned with creating a more sustainable future,” the release said.

However, while the use of ESG data has “evolved rapidly,” Megan Wallingford, associate director of product strategy and development at Sustainalytics, said in the release that “measuring and reporting on positive and negative ESG outcomes has been difficult to-date given different interpretations on how to assess impact.”

These new metrics are “a structured set of product and operational metrics backed by a transparent framework,” she added, which should help investors understand and monitor their ESG holdings. staff


The staff of have been covering news for financial advisors since 1998.