ESG scores are used for a variety of reasons, and there is no one universal ESG score. Therefore the traditional ESG scores incorporated into many financial products are not designed to focus on the ESG issues that are relevant to the financial performance of the company.
For example fuel efficiency has a bigger impact on the bottom line of an airline than it does on an investment bank.
So, rather than adopt a one-size-fits-all approach, we have developed a new ESG scoring system that is specific to a company and their profitability.
Key research findings
Not all ESG issues are equal