Environmental, Social and Governance


Data Analytics

Using ESG to inform better decision-making starts with the right data. With increased transparency and improved reporting, investors now have access to more insights than ever before to understand their exposures, take action to achieve their investment goals and monitor progress.


R-Factor™


Why we Built R-Factor™


Defining Characteristics of R-Factor™


1
Focus On Financial Materiality

For investors to be able to fully trust and integrate ESG scoring into their investment process, they must have confidence that the ESG considerations are material and have a demonstrated link to sustainable long-term value creation. R-Factor™ draws on frameworks that are widely supported by other investors, thereby sending a unified message to companies and investors about which ESG factors are material to a company’s performance and are therefore important to disclose.


2
Commonly accepted, transparent frameworks

We selected the Sustainability Accounting Standards Board (SASB) materiality map as well as national and/or investor-developed corporate governance codes, because they are transparent frameworks supported by large numbers of investors.


3
Multiple Data Sources

R-Factor™ is powered by the raw metrics from four different data providers. This approach increases the overall coverage of our data set, filling in the gaps that exist with any one data provider. Using the inputs from multiple providers also reduces the potential biases that may be built into a provider’s methodology.


4
Strong Stewardship

R-Factor™ is fully integrated into and supported by the efforts of our Asset Stewardship team. We disclose companies’ R-Factor™ scores, as well as the underlying basis for those scores, through our engagements with portfolio companies. This gives boards and management teams a roadmap for the specific dimensions that investors are evaluating to assess a company’s sustainability efforts. It also helps companies identify which metrics to disclose and manage to improve future scores, creating a positive feedback loop in the market. 


Supporting Sustainable Capital Markets




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