IHS Markit launches Sovereign ESG Dataset covering 41 indicators across 211 countries and territories

IHS Markit has launched a Sovereign ESG Dataset incorporating 41 discrete indicators across 211 countries and territories. The dataset outputs are numerical for efficient portfolio integration and include forward guidance on a one-year horizon for key Sovereign ESG indicators.

“Country level ESG indicators are increasingly important for investors as they look to build a holistic picture of ESG risk across all issuers both Sovereign and Corporate,” says Kevin Bourne, co-head, sustainable finance, IHS Markit. “More and more financial institutions are looking to build their own bespoke ESG values across a wider range of detailed country level metrics. Our data sets deliver a detailed ten-year time series combined with a one year forecast across a large number of these, enabling new perspectives being applied to ESG modelling.”

 
“Evaluating the impact of environmental regulation and corporate tax policies of a host country on a specific investment requires a deep understanding of existing and evolving dynamics,” says Alexia Ash, associate director, country risk consulting, IHS Markit. “ESG risks are no longer just the purview of global equities – these disclosures are becoming directly relevant to sovereign-level investing.”

Understanding sovereign ESG provides investors with the opportunity to identify emerging risks and opportunities in new geographies and sectors. The IHS Markit Sovereign ESG metrics will enable users to capture a strategic view of current and future exposure to ESG related policies and provide the opportunity to engage pro-actively and mitigate risk effectively.