A new service for investors to track and understand environmental, social and governance within their portfolios has been launched by CAMRADATA Analytical Services and Bank of America Merrill Lynch Global Research.
Unveiled on Monday, ESG Geographic Portfolio Analysis aims to help investors such as pension funds and insurance companies identify how their international portfolios might be exposed to ESG factors compared to their benchmark.
The service draws on two databases. One contains a geographic breakdown of sales revenue, assets and operating income of more than 4,000 companies. This is combined with a second ranking 214 countries according to 172 underlying ESG risk indicators.
It examines ESG factors falling under 28 themes ranging from climate change and water scarcity to health issues. Governance-related issues such as business rights, corruption and strength of democracy are also addressed.
This, and the use of numerous 'reputable and authoritative' international sources for its information, helps to ESG Geographic Portfolio Analysis stand out from existing offerings, according to its developers. It also offers a clear output report.
Sarbjit Nahal, SRI analyst at BofA Merrill Lynch Global Research, said: 'Investors increasing recognise that environmental, social and governance factors may influence long-term financial performance.
'This new service measures the geographic ESG exposure of any portfolio, enabling investors to have a greater understanding of ESG factors that are at play within their portfolios.'
The services is being offered by CAMRADATA Analytical Services, using exclusively licensed Bank of America Merrill Lynch data and methodology.