- Project management and assistance with responding to key investor ESG data providers and index creators to ensure maximum scoring and accuracy
- Efficiency models that link commonly used reporting standard disclosures to the investor survey enabling effective response using existing sustainability reporting
- Advising where the client may be viewed in positive or negative perspective by third party ESG analytics service providers
- Improving the ESG profiles of the client organization through accurate response to key investor ESG data providers (the information being provided to the investment community)
- Suggestions on improving the ESG profile after the response in order to improve the data profile of the organization in the following years
- Assistance with engaging with investment service providers to address inaccuracies or incomplete information that is provided to the investment community and stakeholders
More on Third Party Investor Data Providers Assistance
Corporate managers talk of "survey fatigue" as literally dozens or perhaps 100 or more third party, independent service providers and analytics firms request details related to the company's ESG key performance indicators (such as for water intake and waste, carbon emissions, natural resources utilized), supply chain activities, protection of human rights, employment practices, safety and health issues, diversity and inclusion policies & practices, and more.
The G&A Institute team helps management to understand the nature of the query, and respond to the request. We profile the universe of service providers to help management gain a better understanding of the field and adjust policies in terms of deciding priorities for response efforts.
As the inquiries from third party ESG information service providers continue to increase, and the individual queries deepen in the issues and questions raised, corporate managements can become frustrated in deciding which queries to respond to, and the value of the effort and resources to be devoted to responding. Many companies triage the effort; the questions raised are, (1) who to respond to, (2) what level of information to provide, (3) what is the purpose of the inquiry?
Large-cap companies are devoting effort to responding to certain investor based surveys in a concerted, coordinated effort often responding to inquiries such as:
- RobecoSAM (CSA) - creators of the DJSI indexes
- CDP (Climate Survey, Water, Forest, Supply Chain)
- Bloomberg Professional ESG Data
- Asset4 / Thomson Reuters Eikon Platform
G&A Institute uses its proprietary data mapping, benchmarking, and "Big Data" systems to examine the competitive positioning of our clients against key selected peers on key material ESG performance metrics as identified by important ESG investor organizations. Corporations receive dozens -- even hundreds - third party queries each year regarding their ESG performance, with extensive questions on key performance indicators.
The G&A Institute team closely monitors and connects with dozens of third party service providers, and organizations that assign scores, rankings and ratings to companies' performance on ESG issues, corporate responsibility programs, and more.
In addition to assistance in responding to these important investor surveys, we also help to identify areas of competitive strength and competitive weakness for the client to consider the appropriate strategic next steps. This is especially important to consider now that mutual funds and exchange-traded funds (ETFs) will increasingly be selecting best in class (or best in sector) when it comes to ESG factoring into their equity selection methodologies. In the cases of equal peers' financial performance, the client may be included in portfolio or not based on competitive ESG positioning with its sector / industry peers.
In areas of competitive strength, the client often has the opportunity to increase investor engagement and communications on aspects relative to these areas. In areas of weakness, the client has the opportunity to examine and develop a strategic approach to shrink and close these critical competitive gaps in a precise and effective way.
All of the above is important for IR professionals, boards and senior executives to consider as third party providers assemble the "best-in-class" for incorporation in investable product offerings for both institutional and individual investors.