Navigating the world of sustainable investing can be complex, but understanding key ESG factors is crucial for making informed decisions. A good place to start is by familiarizing yourself with top ESG company ratings and essential metrics, as well as ESG compliance guidelines to ensure a strong foundation in the field.
Key things to look out for in ESG company data
ESG data provides insight into how companies operate and their impact on society and the environment. Here are some key things to look out for in ESG company data:
Environmental impact
This includes data on a company’s carbon footprint, energy usage, waste management, and water consumption. It’s important to look at the company’s efforts to reduce its environmental impact and its plans for the future.
Social responsibility
This includes data on a company’s labour practices, diversity and inclusion policies, community involvement, and product safety. Look at how the company treats its employees, customers, and the communities where it operates.
Governance
This includes data on a company’s leadership structure, executive compensation, board diversity, and shareholder rights. Look at how the company is managed and whether there are effective checks and balances in place to prevent misconduct.
Industry-specific issues
Some industries have specific ESG issues to consider. For example, a mining company may have to disclose data on its impact on local ecosystems, while a healthcare company may need to disclose data on its drug pricing policies.
Data quality
It’s important to assess the quality of the data being provided. Look at the methodology used to collect and analyze the data, as well as the data’s sources and timeliness.
Materiality
ESG issues that are material to a company’s operations and financial performance are most relevant. Look for ESG factors that are closely tied to the company’s core business, and that have the potential to impact its long-term sustainability.
Comparability
To effectively evaluate a company’s ESG performance, it’s important to be able to compare its data to that of its peers. Look for standardized ESG reporting frameworks, such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB), to facilitate comparability.
Most requested ESG company data and reports
We share our most requested ESG company data and reports here:
- Apple
- Microsoft
- Amazon
- Alphabet (Google)
- Walmart
- JPMorgan Chase
- Morgan Stanley
- Goldman Sachs
- BlackRock
- Bank of America
- Wells Fargo
- Visa
- Mastercard
- PepsiCo
- Coca-Cola
- Procter & Gamble
- Johnson & Johnson
- Pfizer
- General Electric
Key findings from our ESG company data
- Apple, Microsoft, Amazon, and Alphabet (Google) all score relatively well in terms of environmental practices, but their social and governance scores vary.
- Facebook scores lower in terms of governance and social practices, with concerns around data privacy and user safety.
- Walmart and Coca-Cola score lower in terms of environmental practices, while PepsiCo has a relatively high environmental score.
- Within the banking sector, JPMorgan Chase, Morgan Stanley, Goldman Sachs, BlackRock, Bank of America, and Wells Fargo score relatively low in terms of governance. Improvements are also required around social practices (with the exception of Bank of America) with concerns around employee diversity, fair pay, and financing of controversial industries.
- Visa and Mastercard score relatively well across all ESG categories.
- Procter & Gamble, Johnson & Johnson, Pfizer and General Electric score relatively well across all ESG categories.