We at Katalysen believe in a transformation of the investment world towards sustainability. The two main drivers for this are climate change and technology. Climate change is a risk for humanity, and technology makes the analysis of investments according to sustainability criteria possible. We believe that in the future, the vast majority of investments will be chosen according to some sustainability measures. Companies that do not value sustainability will have a hard time to survive.
Sustainability is a difficult subject. As an example of this; mining is often regarded as one of the worst sectors regarding environmental, social and governmental best practices. Wind-turbines create green energy but their engines need rare-earths. Therefore, it would be wrong to condemn the mining sector in general terms, it would even make sense to invest in the mining companies with the best sustainability practices. That will create pressure for all such companies to become better. But of course, one can only judge what can be measured, one needs to be able to score and rank companies and governments according to sustainability criteria.
Conser, one of our portfolio companies, is a leader in the scoring of investments according to sustainability criteria, the so called ESG, which stands for Environmental, Social and Governance. Conser has developed and refined the, in our opinion, only sensible approach to ESG analysis, namely to use a consensus algorithm based on many different sources. ESG assessments are difficult to do and include some level of subjectivity and dependance on large data sets. That is why Conser uses such sources and, most importantly, re-engineers and extracts data from leading asset managers focussed on sustainability.
TrackInsight, the leading ETF Analytics platform, has understood the power of Conser’s methodology and has therefore integrated the Conser analysis in its platform, as shown in the following graphic;
And here follows the press release:
- Nice & Geneva, April 10th, 2019 -
TRACKINSIGHT, in cooperation with CONSER, announces the release of an in-depth ESG analytics and scoring covering over 3,000 ETFs globally
TRACKINSIGHT (www.trackinsight.com), the leading global independent ETF analytics platform announces the deployment of its new ESG Analytics module developed in close cooperation with CONSER (www.conser.ch).
Based on a unique consensus-driven methodology developed by its partner, TRACKINSIGHT analyses ETFs using their actual holdings and offers an in-depth insight into the ESG consensus on firms to which ETFs are exposed, as well as major controversies and breaches of international norms.
Sustainable scoring will be available for more than 3,000 ETFs listed in Europe, North America and Asia, applying a consistent methodology developed by the expert firm CONSER across ETFs issued by the largest investment firms. Scorings are non-solicited and offered at no charge.
In light of the challenges investors face to make sense of too many opinions and methodologies related to ESG assessment, CONSER has established a unique approach based on a meta-analysis of multiple ESG sources including implicit evaluations of rating agencies and sustainable asset managers.
The service and the fund scoring will be released in beta by tranches of 1,000 funds per month until the summer and made available publicly to encourage feedback and dialogue with issuers and investors. Advanced filtering, selection and analytics features are made available to TRACKINSIGHT corporate premium users only.
Jean-René Giraud, founding C.E.O. of TRACKINSIGHT stresses that “this initiative represents a major milestone in the adoption of investment processes involving a sustainability check.
Deploying a consistent scoring methodology across the whole industry is a challenge that nicely fits our ambition to offer an independent access to undisputable information on ETFs made available to investors.
Feedback from our existing customers has shown TRACKINSIGHT is addressing a need all professional investors have been struggling with for years.”
Angela de Wolff, founding partner of CONSER, is “delighted to embark on this new transparency initiative and join forces with TRACKINSIGHT to revolutionize the ETF market. With TRACKINSIGHT’s relevant, accurate and independent analytics combined with our innovative ESG analysis, I have the firm conviction we will be able to efficiently empower international investors by bringing sustainability scoring into the growing market of ETFs.”
About CONSER (www.conser.ch)
As a pioneer in the systematic approach of ESG issues within the finance industry, CONSER guides and helps large institutional investors and asset managers wishing to align their investments with sustainability goals. CONSER distinguishes itself as providing neutral and impartial advice, free from any conflict of interest.
About TRACKINSIGHT (www.trackinsight.com):
TRACKINSIGHT is the first global independent ETF analysis platform offering a fair and transparent access to data and analytics on ETF performances, replication accuracy, volumes, flows, financial and extra financial exposure.
Launched in 2014, the firm provides data, analytics and expertise to the largest ETF allocators globally. Its platform available on www.trackinsight.com is used by over 30,000 investors globally and supporting the ETF selection process of 18 of the 30 largest ETF allocators in the world.
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