Gleaning financially material information from companies requires expert capabilities, trusting partnerships, and robust data sets. From climate to governance structures, our commitment to rigorous analysis helps investors gain insights they need to make informed decisions.
Our proprietary ESG scoring system draws on data from multiple providers, the Sustainability Accounting Standards Board (SASB)’s widely accepted, transparent materiality framework and relevant corporate governance codes to generate a unique ESG score for approximately 10,000 issuers.
Quality data about companies’ ESG practices is critical for effective investment analysis, but the lack of standardization and transparency in ESG reporting and scoring presents major challenges for investors.
We designed R-Factor™ around four core pillars:
By incorporating ESG considerations that are material and linked to long-term value creation, R-Factor™ helps convey to companies and investors which ESG factors are material to a company’s performance and are therefore important to disclose.
Transparent frameworks such as the Sustainability Accounting Standards Board (SASB) materiality map that are incorporated into R-Factor™ are supported by large numbers of investors.
R-Factor™ is powered by the raw metrics from four different data providers, increasing the overall coverage of our data set, helping to address the gaps that exist with any one data provider and reducing potential biases.
Our Asset Stewardship team uses R-Factor™ scores and their underlying bases in engagements with portfolio companies to help boards and management teams identify which metrics to disclose and manage to improve future scores.
R-Factor™ supports the development of sustainable capital markets by helping investors identify ESG solutions that integrate financially material ESG data while incentivizing companies to improve their ESG practices and disclosure in areas that matter.
For Companies
R-Factor™ offers guidance to boards and management teams on which ESG topics to focus on and disclose to investors. In doing so, this is the first ESG scoring system to offer companies a roadmap on which ESG practices to focus on managing and disclosing in order to enhance their scores and improve investors’ view of their ESG performance.
For Investors
By investing in ESG solutions powered by R-Factor™, investors have the opportunity to allocate their capital to companies that are focusing on managing and mitigating financially material ESG risks.
R-Factor™ Reinventing ESG Investing through a Transparent Scoring System
Learn how State Street Global Advisors leverages stewardship and investment expertise to create a transparent scoring methodology that we believe will become an integral part of the financial system.
For questions or any further information on R-Factor scoring, please email us at myrfactor@ssga.com.