Invesco launches global proprietary ESG ratings and insights tool
Invesco has launched Invesco ESGintel, an ESG ratings and insights tool focused on the issues that matter most for sustainable value creation and risk management.
Invesco’s ESG team has partnered with the SIP Technology team (Invesco’s Technology, Strategy Innovation and Planning team), to create this proprietary ESG ratings tool. The tool provides comprehensive coverage of environmental, social and governance (ESG) insights, metrics, data points and direction of change on over 8,000 companies.
Invesco believes this tool is a critical pillar in our aspiration towards systematic ESG integration across all investment strategies across the firm. Invesco ESGintel will be leveraged initially for Luxembourg, Irish and UK domiciled products with corporate exposure, as well as several additional strategies from other regions. The platform will provide wider coverage than most external providers due to multiple data sources and our ability to include models for companies where no public data or scoring currently exists.
Cathrine De Coninck-Lopez, Global Head of ESG at Invesco, says: “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.”
Invesco believes the journey a company goes on as it develops and improves its ESG approach across its entire business model should be monitored. This is why the Invesco ESGintel tool will provide ratings as well as trend scores at both a company level and indicator level, with complete transparency. This will facilitate a focus on higher risk company specific issues.
De Coninck-Lopez adds: “By having our own in-house ESG expertise and practical data to formulate our views, we will be able to continuously evolve our methodology. As the tool develops, we are incorporating additional features and expanding the universe of companies currently covered with even greater transparency, based on the needs and interests of our investors.”
ESGintel takes a dynamic approach combining different data sources and new inputs. This includes data sets from Bloomberg ESG, Sustainalytics’ Controversies and so far, the following climate tools have been included: 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.
Stephanie Butcher, Chief Investment Officer, Henley-on-Thames, UK, says: “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.”