Bloomberg Makes U.S. Equity Index Debut With ESG Benchmarks
September 17 2019 - 11:36AM
Dow Jones News
By Dieter Holger
Bloomberg LP has entered into the U.S. equity index market
equipped with environmental, social and governance benchmarks as it
aims to win over clients in the crowded ESG data market.
"We are responding to requests from investors to offer
comprehensive and competitive equity index solutions to help our
existing index clients address their needs," said Steve Berkley,
global head of Bloomberg Indices.
The New York-based market intelligence company has launched a
total of 11 indexes on U.S. companies, six of which are
ESG-focused, Bloomberg said Tuesday.
ESG indexes are based on work by the Sustainability Accounting
Standards Board, which determines the ESG issues most significant
to a given industry, Bloomberg said. Bloomberg partnered with
investment manager State Street Global Advisors to gain access to
its in-house ESG scoring system, called R-Factor.
"This transparency allows companies to know what to manage and
disclose in order to improve their performance," said Rakhi Kumar,
head of ESG investments and asset stewardship for State Street
Global Advisors.
Bloomberg already offers fixed-income, commodity and currency
indices and ESG data on more than 11,500 companies. In 2016, there
were more than 125 ESG data providers, according to the Global
Initiative for Sustainability Ratings, while market research firm
MSCI Inc. (MSCI) already boasts more than 1,000 ESG indexes.
Write to Dieter Holger at dieter.holger@dowjones.com;
@dieterholger
(END) Dow Jones Newswires
September 17, 2019 11:21 ET (15:21 GMT)
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