Wed, May 25, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Analysis shows US companies have made meaningful improvements in ESG scores since 2015

Thursday, April 28, 2022

Bailey McCann, Opalesque New York:

MSCI ESG ratings for U.S. companies have increased since 2015 and a new analysis from D.E. Shaw group suggests that the ratings hold up. D.E. Shaw used the ESG rating framework provided by MSCI and the Russell 1000 as its data sources for the paper. The analysis focuses primarily on E&S factors like emissions and sustainability.

The analysis is designed to show how ESG ratings could theoretically map to the efforts within a given company to improve its ESG score once it has started reporting ESG data. It can be difficult to come away with a clear picture of what ESG ratings actually mean in practice because not every ESG factor is directly applicable to every type of company. Similarly, aggregate rating improvements can look positive on the surface, but could be driven primarily by certain industries or certain types of companies within a cohort.

D.E. Shaw examined whether the changing composition of the Russell 1000 to include fewer resource-intensive companies over the period since 2015 amounted to something like grading US companies on a curve. Analysts also considered other structural factors including improvements in ESG reporting and the number of companies that were new to reporting ESG data. Analysts found that a significant portion of rating increases have been the result of companies working to improve low ESG scores over time.

According to the paper, since 2015 the aggregate E&S score for the Russell 1000 sample ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Schroders acquires European renewable infrastructure manager Greencoat Capital[more]

    Laxman Pai, Opalesque Asia: British multinational asset management company Schroders has completed the acquisition of a 75% shareholding in Greencoat Capital, one of Europe's largest investment managers dedicated to the high-growth renewable infrastructure market. The remaining 25% is owned by Gr

  3. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  4. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  5. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm