Blog / Insights / ESG Pulse and Beta for April 26th 2023 - Financials somehow continue to avoid controversy risk
ESG Pulse and Beta for April 26th 2023 - Financials somehow continue to avoid controversy risk
This week we take a look at two of our metrics - the ESG Pulse and the ESG Beta to dive deeper into differentials within industries.
ESG Analytics coveres over 15,000 companies, however, the following exclude companies that have low amounts of external coverage which is a key input into our NLP algorithms.
This chart shows the ESG Pulse by GIC Sector as at April 26th which includes their full historical data. The most surprising is financials.
Financials average has been coming down quite a bit this year as we witness major events such as Silicon Valley Bank (SVB) and Signature Bank liquidity issues, which impact ESG Events such as Busines model Resilience.
As we can see from SVBs chart below, they have a steep decline in their ESG Pulse (the green line) which is a day to day average. The white line (30 day moving average) is still catching up to these impacts.
We have also seen controversies related to Canadian banks and their involvement in fossil fuels
The interesting thing here is that financials have one of the lowest ESG Betas - which results in lower price impacts as a result of controversies or ESG Risk - go figure. Perhaps this is due to the stability and consistency of earnings - but it is a interesting trait - especially when we talk about the largest FI's in the world.
Want access to all this data at the company level ? Get in touch at www.esganalytics.io/contact
Visit the ESG Analytics web platform to learn more
ESG Pulse and Beta for April 26th 2023 - Financials somehow continue to avoid controversy risk
Qayyum Rajan
August 1, 2023
This week we take a look at two of our metrics - the ESG Pulse and the ESG Beta to dive deeper into differentials within industries.
ESG Analytics coveres over 15,000 companies, however, the following exclude companies that have low amounts of external coverage which is a key input into our NLP algorithms.
This chart shows the ESG Pulse by GIC Sector as at April 26th which includes their full historical data. The most surprising is financials.
Financials average has been coming down quite a bit this year as we witness major events such as Silicon Valley Bank (SVB) and Signature Bank liquidity issues, which impact ESG Events such as Busines model Resilience.
As we can see from SVBs chart below, they have a steep decline in their ESG Pulse (the green line) which is a day to day average. The white line (30 day moving average) is still catching up to these impacts.
We have also seen controversies related to Canadian banks and their involvement in fossil fuels
The interesting thing here is that financials have one of the lowest ESG Betas - which results in lower price impacts as a result of controversies or ESG Risk - go figure. Perhaps this is due to the stability and consistency of earnings - but it is a interesting trait - especially when we talk about the largest FI's in the world.
Want access to all this data at the company level ? Get in touch at www.esganalytics.io/contact
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Why is ESG data expensive?
The costs of collecting, analyzing and storing data are not cheap. And unlike financial data, there is no standardized process for determining ESG scores.The complexity of ESG data and the lack of standardization in the process for assessing environmental, social and governance factors also makes it difficult to compare companies on these metrics. Regulators are trying to make ESG information more transparent by mandating that companies disclose them alongside their financials, but this is still materializing globally. Traditional providers such as MSCI or Refinitiv employ armies of analysts to get this data from corporate disclosures (if it exists) and then normalize that data and provide it back to you. This is a very expenive process, with lots of quality control, and importantly - because this data is not disclosed very frequently (companies typically disclose ESG related data annually), there is less incentive to have a continuous subscription to a ESG data feed, along with risk of information leakage. All of this results in very expensive, and limited annual contracts.
The costs of collecting ation in the process for assessing environmental, social and governance factors also makes it difficult to compare companies on these metrics. Regulators are trying to make ESG information more transparen
The costs of collecting
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The costs of collecting
The costs of collecting
The costs of collecting
The costs of collecting ation in the process for assessing environmental, social and governance factors also makes it difficult to compare companies on these metrics. Regulators are trying to make ESG information more transparen
The costs of collecting
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