ESG Data Aggregators and Sustainable Investing

Sustainability themed managers typically rely on ESG data from aggregators (i.e. Sustainalytics/Morningstar, MSCI KLD, Thompson Reuters) to incorporate sustainability into their investment decisions.

In total, there are over 100 ESG data aggregators. The data collected and provided by the ESG aggregators is the underpinning for many sustainable investment funds. The development of material, quantifiable and comparable metrics is the key for large-scale adoption of environmental factors into mainstream investing. Unfortunately, the latest research confirms that this data is problematic and mainstream institutional investors rightly remain skeptical.

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