ESG data is integrated to identify weaknesses and risks to which companies are exposed to, especially risks related to Environmental, Social and Governance issues. ESG data helps understand how companies are mitigating those sources of risk – either via policies or actions.
Depending on the bond type, different factors/risk exposures may be weighted more heavily.
ESG data are provided from multiples sources such as:
- MSCI ESG Research
- Sell-side research