Dow Jones Launches Sustainability Data to Optimize Global Environmental, Social and Governance (ESG) Investing
Innovative, news-driven data set offers timely, transparent and tailored insights for asset managers to enhance ESG portfolio strategies
Dow Jones today announced the launch of its sustainability data to help the global financial community understand the performance and impact of a company’s Environmental, Social and Governance (ESG) practices. The initial offering is available for asset managers to make sustainable investment decisions and to better engage the growing audience of purpose-driven investors.
The new data set provides sustainability scores and sentiment on more than 6,000 publicly traded companies. The scoring model is aligned with the Sustainability Accounting Standards Board (SASB) Standards, covering five sustainability dimensions and 26 categories. Combining company-disclosed data with news from thousands of global sources, the methodology is uniquely news driven. Daily news sentiment and scoring updates ensure financial firms are basing sustainable investment decisions on information that is more timely and transparent than self-reported data alone.
“We’ve seen a significant surge in sustainable investing as the next generation of investors wants their portfolios to have a positive impact on the world in addition to financial gains,” commented Joe Cappitelli, general manager of Dow Jones Newswires. “Financial professionals are looking for a comprehensive view of companies’ ESG practices; however, what they currently find are opaque data sources, lacking in detail and up-to-date information. Our innovative model supplements company self-reporting with news data to provide trusted, timely ESG sentiment and scores that can help portfolio managers optimize strategy and design products for the future of investing.”
With regulation on the rise, Dow Jones’s sustainability data also helps financial firms provide greater transparency about how they are accounting for sustainability risks, and integrating ESG into the investment process.
“We are seeing a wave of new policy and regulatory changes in the sustainable investment space that is driving demand for better data,” said Glenn Hall, editor, Professional News at Dow Jones. “As investors navigate these changes and increasingly consider more nonfinancial factors, they need a robust and dynamic way of evaluating how well companies are managing the impact they may have on people and the planet. Our vast news and data offering gives asset managers the facts and insights they need to more effectively manage their portfolios and stay ahead of new regulatory requirements.”
The Wall Street Journal’s renowned editorial team led the creation of Dow Jones’s sustainability scoring methodology. The data model was co-developed with ESG data and technology provider Arabesque S-Ray. Combining machine learning techniques with human expertise, Dow Jones’s unique methodology will help institutional investors build ESG portfolios with confidence.
The new data set includes:
- Company Scores and Sentiment – 6,000+ companies around the world are evaluated and rated across 26 categories of sustainability
- Industry, Category and Country Scoring – Granular data, news signals and scoring weighted for industry relevance
- Trusted Evaluation – A transparent model
Dow Jones’s sustainability data will initially be available via a feed, designed for institutional investors to integrate into portfolio management and strategy systems. Customers that want to read the news driving score changes can add on a stream of sustainability-related media coverage from thousands of global sources.