Dow Jones publishes ESG scores on 6,000+ shares

Initially available via a feed, the data sets were designed for institutional investors to integrate into portfolio management and strategy systems. 

Dow Jones

Dow Jones has made available its sustainability data sets for ESG practices so that asset managers can make sustainable investment decisions and better engage the growing audience of purpose-driven investors.

The initial offering, with scores and sentiment on more than 6,000 publicly traded companies, aims to help understand the performance and impact of a company’s Environmental, Social and Governance (ESG) practices.

Joe Cappitelli, general manager of Dow Jones Newswires, said: “We’ve seen a significant surge in sustainable investing as the next generation of investors wants their portfolios to have a positive impact on the world in addition to financial gains. Financial professionals are looking for a comprehensive view of companies’ ESG practices; however, what they currently find are opaque data sources, lacking in detail and up-to-date information. Our innovative model supplements company self-reporting with news data to provide trusted, timely ESG sentiment and scores that can help portfolio managers optimize strategy and design products for the future of investing.”

Glenn Hall, editor, Professional News at Dow Jones, added: “We are seeing a wave of new policy and regulatory changes in the sustainable investment space that is driving demand for better data. As investors navigate these changes and increasingly consider more nonfinancial factors, they need a robust and dynamic way of evaluating how well companies are managing the impact they may have on people and the planet. Our vast news and data offering gives asset managers the facts and insights they need to more effectively manage their portfolios and stay ahead of new regulatory requirements.”

The scoring model combines company-disclosed data with news from thousands of global sources, in a “uniquely” news-driven methodology aligned with the Sustainability Accounting Standards Board (SASB) Standards. Daily news sentiment and scoring updates ensure financial firms are basing sustainable investment decisions on information that is more timely and transparent than self-reported data alone.

The ESG scores cover five sustainability dimensions and 26 categories and are being published to address rising regulation on the matter in order to provide greater transparency about how financial firms are accounting for sustainability risks, and integrating ESG into the investment process.

Dow Jones’s sustainability scoring methodology was created by The Wall Street Journal’s editorial team and the data model was co-developed with Arabesque S-Ray.

Institutional investors will be able to build ESG portfolios with confidence thanks to Dow Jones methodology powered by machine learning techniques and human expertise.

The new data set includes company scores and sentiment on more than 6,000 companies around the world which are evaluated and rated across 26 categories of sustainability.

Dow Jones’s sustainability data can be filtered by Industry, Category and Country Scoring, with granular data, news signals and scoring weighted for industry relevance.

Initially available via a feed, the data sets were designed for institutional investors to integrate into portfolio management and strategy systems.