Invesco has announced a new ESG ratings and insights tool, focused on the issues it believes that matter most for sustainable value creation and risk management.
The asset manager’s ESG team has partnered with the SIP Technology team (Invesco’s Technology, Strategy Innovation and Planning team), to create Invesco ESGintel.
The new tool provides extensive coverage of ESG insights, metrics, data points and direction of change on over 8,000 companies.
The firm considers Invesco ESGintel to be a critical pillar in its objective for systematic ESG integration across all of its investment strategies. The tool will be leveraged initially for Luxembourg, Irish and UK domiciled products with corporate exposure, alongside several additional strategies from other regions.
Invesco believes the transition as a company improves ESG approach across its entire business model should be monitored, consequently the Invesco ESGintel will provide ratings as well as trend scores at both a company level and indicator level, with complete transparency.
Invesco ESGintel combines multiple different data sources and new inputs. This includes data sets from Bloomberg ESG, Sustainalytics’ Controversies and climate tools such as the Transition Pathway Initiative management scores (TPI), ISS Carbon Data, Science-Based Targets (SBT) and a carbon disclosure score from CDP.
Invesco is working to add new data sources and to significantly expand the number of companies rated before the end of the year.
The platform will provide wider coverage than most external providers due to multiple data sources, and Invesco’s ability to include models for companies where no public data or scoring currently exists.
Cathrine De Coninck-Lopez, global head of ESG at Invesco said: “Invesco has adopted a holistic view on how a company’s value chain is impacted by various ESG metrics. By looking at what is impacting a company’s business model from an ESG perspective, our investment teams are able to apply this intelligence to their investment decision making processes. We see this tool as a key building block to having a transparent and proprietary viewpoint on ESG for all our holdings, as we have considered our clients’ needs first.”
Stephanie Butcher, chief investment officer, Henley-on-Thames, UK, added: “ESGintel provides a way for us to have a proprietary view on ESG risks and opportunities related to our investment companies. The tool provides a high coverage, while giving flexibility to augment the overall view of company ESG performance with our own insights and engagement with companies. Combining our own analysis with different external sources, provides richer insights than simply taking the view of a single external provider.”
