Responsible investing requires a tool to measure the performance of a company’s business operations and governance as it relates to financially material ESG factors facing the company’s industry. We’ve designed a tool to do just that. We call it R-Factor™.
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.