ESG Analytics

GMI Ratings’ Environmental, Social and Governance (ESG) ratings evaluate the sustainable investment value of public corporations. First released in early 2012, these ratings are the result of more than a year of study and testing by our senior analytical team. The ratings also incorporate input from institutional investors, auditors, insurers, corporate consultants and decision-makers.

Key characteristics of our ESG ratings include:

  • Broad Coverage – We publish our proprietary ESG Ratings on 6,400 companies worldwide, including over 1,000 companies based in emerging markets.
  • Coverage of Key Risk Factors — Our ESG Ratings are based on 150 carefully selected risk factors (ESG KeyMetrics®) organized into six categories to ensure consistency,  transparency and structural integrity. The ESG KeyMetrics® reflect actual behaviors rather than corporate policies or affirmations of intent to adhere to best ESG practices.
  • Simple and Consistent Quantification — Our ESG Ratings are expressed in two forms: as percentile scores ranging from 1 to 100, and as a letter grade (“A” to “F”) based on the percentile scores. While the letter-grade ratings provide a simpler and more intuitive means for quick assessments, the percentile rankings provide a more highly differentiated guidance for in-depth analysis and benchmarking.
  • Context-sensitive Weightings — Unlike models with evenly weighted metrics, we assign context-sensitive relative weightings to our key metrics, based on market, regional, ownership or sector differences. This sensitivity to regional and sector-dependent variations sharply differentiates GMI Ratings from exclusionary and “best-in-class” screening methodologies that investors associate with more traditional Socially Responsible Investing (SRI) research.
  • Trucost Data – Our integrated research platform, GMI Analyst, provides access to Trucost environmental performance data. Trucost provides the world’s most comprehensive data on corporate environmental impacts, including greenhouse gases (GHGs), water, waste, pollutants and natural resource dependency.
  • Controversy Screening – Our controversy screening tools helps investor clients to satisfy their compliance requirements. Specifically, investors can assess the exposure of investment portfolios to certain lines of business that run counter to various principles of Socially Responsible Investing (SRI). Working closely with our partner, Ethix SRI Advisors, GMI provides exclusionary screening based on ethical norms, involvement in certain sectors and business practices in private and public sectors.

Sample ESG