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In the increasingly complex ESG world, financial actors need to take well-informed decisions in pre- and post-investment phases.
Their challenge is to comply with regulation, minimize ESG risks and take advantage of responsible investment opportunities.
Our solutions are the basis for securities selection and the follow-up of portfolios sustainability performance.
We work with renowned partners to offer comprehensive and global ESG data that feed our high-quality in-house research. We design individual solutions that are focused on clients’ needs.
We have access to ESG data for a global universe of some 10,000 equity and bond issuers. Our data span from controversial activities to sustainability scores, from controversies to climate alignment, from Sustainable Development Goals to European regulatory indicators. Our ESG Data Solutions comprise different modulable services – all accessible with no need to license an ESG platform.
Provision of granular datapoints including quantitative and qualitative information on all ESG topics, for a universe of 10,000 worldwide companies.
Line-by-line screening of our global universe according to the individual client strategy. The user-friendly deliveries may contain complete and processed analysis and can be updated on a regular basis (e. g. quarterly).
Implementation of a monitoring process to be automatically notified of any violations that may occur between data deliveries.
Summary of the analysis results for an issuer as an additional source of information. This allows to understand why a specific business incident constitutes an exclusion against the defined client strategy.
Portfolio level analysis of sustainability metrics. The reporting scope and depth can be chosen by the client (e.g. qualitative or quantitative, ESG, climate or regulatory data reporting, comparison with a benchmark).
Offering of data-related consulting services: help with the choice of a suitable set of ESG criteria or support to fulfill regulatory requirements or voluntary schemes (e. g. EET).
Everyone is unique: that’s what we believe and how we want to implement your sustainability approach – whether it’s the data processing or a specific delivery format. Our solutions cover your individual and innovative requirements.
In-house and third-party: we provide you with comprehensive sustainability data from multiple sources and combine them for you. This results in no data gaps as well as full coverage for large, mid and small caps.
Regulatory requirements and an increasingly complex market are challenging, especially for smaller financial market players. With us you receive comprehensive, convenient and cost–effective data solutions from one single provider. You don’t have to pay license fees or rely on personnel capacities for data analysis processes.
No matter whether at the beginning or in the middle: as a reliable ESG expert, we accompany you on your way to sustainable investment. Our holistic approach allows you to concentrate on your core business. Personal and local client service is a high priority for us – this is also confirmed by our customers.
With the Hamburger Nachhaltigkeitsfonds, Hamburger Sparkasse established the first fund based on the best-in-progress principle of the Institute for Sustainable Investments (NKI). The NKI-approach specifically focuses on companies that have been able to improve their sustainability performance significantly in recent years. The progress is measured according to the ESG ratings from the past three to four years. The decisive factor is therefore not the status quo achieved in the area of sustainability, but rather a company’s progress towards a more sustainable way of doing business. The aim of the bank was to identify suitable issuers for their funds based on global ESG data and the implementation of a complex ESG approach.
EthiFinance developed an individual ESG strategy based on the principles of the best-in-progress approach of Hamburger Sparkasse. Based on comprehensive historical ESG data sourced from Moody´s a complex best-in-progress analysis approach was conducted. This analysis is carried out on a quarterly basis. In addition, a monthly controversy monitoring is applied.
The analysis is done in a three-step-approach:
Based on the ESG rating, companies with the lowest ratings are eliminated in a first step. Varieties of indicators, such as environmental protection, social dialogue or business ethics, are taken into account. This ensures that the companies remaining in the investment universe meet the minimum requirements for ESG quality.
In the second step, the remaining investment universe is screened for certain exclusion criteria, e.g. nuclear energy, fossil fuels, weapons or violations of the UN Global Compact.
In the third step, the best-in-progress approach is applied. Only those issuers are eligible for investment that have made the greatest progress in the ESG ratings from the past years. For the analysis, comprehensive historical data is required above all.
With the Hamburger Nachhaltigkeitsfonds, Hamburger Sparkasse established a fund based on best-in-progress principles. In contrast to existing approaches, the best-in-progress does not focus on best-in-class companies, but on those that are making the greatest leaps forward in their sustainability efforts. Based on the data solution of EthiFinance, Hamburger Sparkasse is able to follow a holistic approach that covers historical data for up to 4 previous years and the analysis of both exclusion criteria and the ESG performance of the companies.
With providing the sustainability data for Hamburg’s Sustainability Fund, EthiFinance helps to adress the demanding best-in-progress evaluation.
The SD-KPI standard 2016-2021 was modelled by EthiFinance on the basis of comprehensive and global ESG research. The data was sourced from our data partner Moody’s (Moody’s® is a registered trademark). The SD-KPIs were operationalised using the appropriate research lines including a complex mapping of the SD-KPIs to the appropriate ESG indicators. For each SD-KPI, EthiFinance determined suitable threshold values to enable a company- and sector-specific benchmarking of the relevant environmental, social and governance indicators.
Through the modelling of EthiFinance, a comprehensive database was created for the implementation of company- and sector-specific benchmarking on the basis of SD-KPIs. The modelling process was based on various research lines, which included relevant quantitative as well as a variety of qualitative ESG data.
SD-KPI and SASB standards have a high overlap. SASB is now part of the International Sustainability Standards Board (ISSB). The standardised solution of EthiFinance and SD-M enables banks, investors, asset managers and index providers to easily and systematically integrate SD-KPIs into risk management, indices, funds, sustainability-linked bonds and loans.
