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Universal-Investment

Service Providers Framework 2020

You are in Research and Data Provision » Research/process level

Research/process level

RDP 02. Sources for research and/or rating

02.1. Indicate the types of sources you use for research and/or ratings of companies/sectors/geographies or similar. Tick all that apply.

02.2. Indicate how ESG factors are incorporated into your research and/or rating methodology

02.3. Describe how you define materiality and how this is captured in your research and/or rating methodology as well as final product.

          In our ESG report we break down the clients' portfolio for each dimension (environmental, social, governmental) into key issues. These key issues (Climate change, environmental opportunities, natural resource use, waste management, human capital, product safety, social opportunities, business ethics, corporate governance, government and public policy) with multiple sub-issues as well as controversy exposure are selected by MSCI with their ESG methodology.
        

02.4. Additional information. [OPTIONAL]


RDP 03. Stakeholder input (Not Applicable)


RDP 04. Up-to-date assessment and ratings

04.1. Indicate how you ensure that your ESG assessment of companies/ sectors/ geographies or similar is up-to-date and that new information is incorporated or new assessments are conducted at reasonable intervals.

04.2. Additional information. [OPTIONAL]


RDP 05. Balanced research and assessment

05.1. Indicate how you typically ensure a balanced approach to your research methodology and assessing/rating of companies/sectors/geographies or similar. Tick all that apply and explain your approach to each option.

Type of indicators
          MSCI
        

Explain your approach

          The MSCI ESG Ratings model is industry relative and uses a weighted average approach. 
In the MSCI methodology, the weighted averages of the key issue scores are aggregated and companies’ scores are normalized by their industries. After any overrides are factored in, each company’s final industry-adjusted score corresponds to a rating between best (AAA) and worst (CCC). These assessments of company performance are not absolute but are explicitly intended to be relative to the standards and performance of a company’s industry peers.
        

05.2. Additional information. [OPTIONAL]


RDP 06. Consistency and comparability

06.1. Describe the control processes in place to ensure quality of research.

          Since we receive our ESG data from MSCI, MSCI has effective control processes in place to ensure the quality of the raw data they use (like company financial and sustainability disclosure, specialized government & academic data sets, media searches…). MSCI execute formal in-depth quality review processes at each stage of analysis, including automated and quality checks of data and rating publication. Moreover, they have a Methodology Committee in place that has to approve of any exceptions, truncations, or major (2+) rating changes; and a ESG Methodology Committee to review contentious cases.
        

06.2. Additional information. [OPTIONAL]


RDP 07. Emerging ESG issues and trends (Private)


RDP 08. Client use of outputs (Private)


RDP 09.


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