Edison Looks to Democratize ESG Insights for Investors with Launch of New ESG Reports
Investment research and advisory company Edison Group announced today the launch of Edison ESG Edge reports, a new solution aiming to make the assessment of ESG performance easier and to democratise investors’ access to ESG insight, allowing them to make more informed investment decisions.
Edison ESG Edge utilizes a standardised structure and a ratified, forward-looking data set of drivers and future performance indicators. Beginning with the analysis of data, in collaboration with data provider Rebalance, the platform evaluates companies across 10 different layers including: strategy, peer benchmarking, ESG SWOT, rebalance scores, environmental performance insight, social responsibility scorecard, socio-political performance, governance scorecard, stakeholder analysis and ESG Risk and VaR.
This information is then followed up by in-depth management and employee interviews to test initial hypotheses and mine the narrative behind the data. The findings are then condensed into a final report with a strong focus on key ESG drivers, transition opportunities and risks.
While Edison notes that ESG investing has become mainstream, the company highlights the concerns of many investors regarding the quality and fragmentation of ESG data, given a lack of consistent and complete standards. Edison also believes that there is an imbalance in access to ESG information, with the majority of relevant ESG information only reaching a limited proportion of large institutional investors, leaving other investor groups, such as family offices, and retail investors behind. The company aims to solve these problems with its new solution.
Edison’s distribution platform makes every report available to its global audience of specialist and boutique institutions as well as family offices, wealth managers, retail investors and large institutions. Edison stated that its solution will enable all investor groups to have an all-encompassing report of companies’ financial and ESG drivers.
Neil Shah, Managing Director, Content and Client Strategy at Edison Group said:
“While ESG investing is certainly now mainstream most investors do not have access to the level of information they need or the resources to analyse fully ESG data, which is critical for them to make the most informed investment decisions.
“With our Edison ESG Edge reports we address this issue and provide the standardisation of data and the analysis to allow them to accurately assess companies against ESG criteria. Democratising access to ESG data benefits both the companies seeking to prove their ESG credentials as well as the investors looking to commit capital to them, making for more transparent capital markets, which will ensure that, from an ESG perspective, funds flow to the most deserving companies.”