ESG Ratings and Data

Our ESG ratings are established through the collection of raw data, including extensive dialogue with the rated entities, and the attribution of ESG scores based on a proprietary scoring-model. In addition, we provide various ESG data sets: ESG controversy research, controversial activities, SDG (Sustainable Development Goals) contribution and EU Taxonomy alignment.

Comprehensive Insights into Sustainability Performance, Involvement and Impact

We provide financial decision makers with a comprehensive set of ESG Ratings and Data on over 2300 listed European small, mid- and large caps.  

Our ESG Ratings assess the way in which companies manage their ESG risks, how mature they are in their Corporate Sustainability journey, and how this maturity evolves over time. The Ratings are based on 140 single data points, which we collect through an interactive process including dialogue with rated entities. Our proprietary scoring model allows us to produce a variety of scores on different levels (environment, social, governance and combined ESG) and deliver detailed data sets to our clients (including scores, weights and raw data) as well as detailed rating reports including analyst comments. 

In addition to our ESG Ratings and underlying data points, we offer a variety of other ESG-related datasets on the same universe of 2300 issuers: 

  • Controversy Research: We provide an alert and monitoring system for corporates involved in controversies and incidents related to ESG issues.  
  • SDG Contribution Data: Our data allows to identify a company’s contribution to 16 Sustainable Development Goals (SDGs) through its products, services, and operations. 
  • EU Taxonomy Data: Our data allows to understand how companies are aligned with the EU Taxonomy’s six environmental objectives 
  • SFDR / PAI Data: Our dataset covers the 14 mandatory IPA indicators required for SFDR reporting. 
  • Business Activities Screening: We provide a detailed list of companies involved in specific business activities, used by clients for exclusion or inclusion strategies and requested by various fund ecolabels and investor guidelines. 

Client benefits

In-Depth ESG Insights

EthiFinance’s ESG Ratings and Data allow investors to get an in-depth understanding of the sustainability performance of the rated companies. They enable our clients to screen their portfolios, comply with different regulations, and get specific information on issuers’ alignment with different norms, standards, and policies.

Proven ESG Expertise

We provide high-quality ESG research, grounded on more than 20 years of ESG rating experience. EthiFinance is a pioneer in Europe and is recognised by the market for the quality of its data.

SME-Focused Methodologies

EthiFinance is also the recognised expert on small and medium-sized enterprises with specifically adapted methodologies, tools, and processes.

Customisable and Collaborative Services

Our services are customisable to specific client requirements, with a flexible subscription offering, including additional inclusion of issuers on demand. EthiFinance is a trusted partner of the European investment and sustainable finance community, having built close collaborations with numerous investors, financial institutions, and companies on ESG Evaluation and Rating since its creation in 2004.

Use Cases

Our ESG Ratings and Data serves various investor use cases:​

Investment decision making​ and sustainable product design

Understanding the ESG performance, impacts, involvements of issuers allows to align investment decisions with sustainability and ESG strategies, via stock-picking, quant approaches or specific inclusion / exclusion policies.​

External reporting, compliance and risk management

Our data can be used to build external reports and to comply with SFDR, the French Energy & Climate Law and other ESG-related reporting regulations. The data and ratings also allow to identify companies involved in controversies and incidents or in products that bear current or future investment risks.

Stewardship and Engagement​

To prepare outreach to and engagement with issuers in accordance with stewardship and voting strategies, our data and reports allow to gain in-depth understanding of the sustainability positioning, performance, policies and measures of invested companies.

Methodology

Through our ESG Ratings, we assess the extent to which companies manage the ESG risks and issues that are material to them from a double materiality perspective, i.e. both from a financial perspective on the one hand, and an impact and stakeholder perspective on the other.  

Our ESG Ratings are based on a proprietary scoring model. We collect over 140 data points covering four pillars: Environment, Social, Governance and External Stakeholders. The ESG data is collected from publicly available sources and through an in-depth dialogue with companies.  

Our scoring model allows us to weigh and aggregate the different ESG factors and results in an overall ESG score on a scale between 0 and 100, as well as sub-scores on a E/S/G/ES pillar level. 

We also monitor ESG controversies for all rated companies. This involves identifying and analysing significant allegations, scandals, or contentious issues involving the company. Our process includes a qualitative analysis to determine the severity level for the company and its stakeholders. We have defined five controversy severity levels: neutral, not significant, significant, high risk and critical risk. 

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