OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a...
Transcript of OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a...
ESG Consensus Scores& Detailed Metrics
OWL ESG™
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OWL ANALYTICS SUMMARY
OWL Analytics & Investment Research is a data and indexing company that
offers detailed data and metrics on the environmental, social, and
governance (ESG) characteristics of global equities. Founding in 2012, our
clients are some of the largest financial firms in the world, representing over
$2 trillion in assets under management and advisement.
BIG DATA APPROACH OWL employs a big data approach to generating ESG scores, peer ranks, and peer percentiles,
based on the largest foundation of data for every company we cover.
CONSENSUS BASED OWL leverages the collective intelligence of hundreds of sources of ESG data and research to
generate consensus metrics for every company on various common ESG themes.
MOST COVERAGE OWL offers the industry’s most comprehensive coverage of 25,000+ global equities, making us an
ideal partner when benchmarking versus popular indices.
MONTHLY FREQUENCY OWL publishes ESG metrics monthly rather than yearly, providing fresher insight for our clients
and partners.
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AN ESG ISSUE: RANK DISPERSION
We created OWL ESG after discovering that companies received
significantly different ESG scores and ranks from different research firms.
ESG Ranks of 12 Overlap Top 100 Ranked Companies Across 3 Research Firms
Average Rank Dispersion of 12 Companies
We found that as companies decreased in market capitalization, the
score/rank discrepancy between providers only widened.
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COMMON ESG DATA PROBLEMS
ESG reporting is not regulated in
most markets and even in markets
with regulation, standards are not
nearly as strict as for financial
reporting.
LESS REGULATED NOT STANDARDIZED
ESG reporting is all over the place,
with many companies changing
the ESG issues they report on and
how they report on them from year
to year.
Most ESG data is self-reported with
the lack of regulation resulting in
companies only reporting on data
favorable to them or framing
reporting in a favorable manner.
SELF-REPORTED LIMITED HISTORY
ESG reporting is relatively new
making it difficult to gather
enough data on each company
from which useful insights and
intelligence can be generated.
The rank dispersion results in large part due to problems with ESG source data.
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ESG SCORING & RANKING PROBLEMS
Score and rank divergence is also due to different data used by the ESG research firms to rate companies.
Research Firm 1
Research Firm 2
Data Used by Firm 1 to Rate Company ABC
Data Used by Firm 2 to Rate Company ABC
OverlapData Used by Firm 1 to Rate Company ABC
Data Used by Firm 1 to Rate Company XYZ
Overlap
Data for Company ABC
Data for Company XYZ
Two Firms Rating Same Company One Firm Rating Two Companies In Same Industry
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OWL ESG SOLUTION
Aggregated millions of ESG data elements
and metrics from hundreds of sources of
ESG information & research.
Identified 12 Environmental,
Social, and Governance themes (Key Performance
Indicators) common to underlying
sources.
Mapped data & metrics at the industry and
sector level from underlying
sources to the 12 Key
Performance Indicators (KPIs).
Normalized and optimized inputs
to eliminate bias, reduce
error, and generate
consensus at the KPI level.
Provide more weight within a KPI to metrics
and data based on the level of
consensus among sources.
Generated multiple
versions of ESG, E, S, & G scores, peer ranks, and peer percentiles
from the base KPIs.
OWL ESG was designed from the ground up to reduce subjectivity in ESG scoring
by providing a robust and reliable ESG consensus of every company covered.
1 2 3 4 5 6
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CONSENSUS SCORING
Public Source Data Data: Firms 1-7
ESG Issues: Most Consensus ESG Issues: Least Consensus
Every company scored on the largest foundation of data and metrics for each of our 12 Key Performance Indicators (KPIs).
Supplement missing data for each KPI with public source data and metrics.
Weight ESG issues within KPI based on the degree of consensus among underlying sources.
Data Used by OWL to Rate
Company ABC
Data Used by OWL to Rate Company XYZ
Overlap
Data for Company ABC
Data for Company XYZ
OWL: Better Scoring of Peer Companies
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OWL DATA & METRIC OFFERING
ESG scores,ranks, &
percentiles
E, S, & G scores, ranks, &
percentiles
KPI scores, ranks, & percentiles
OWL ESG OWL Detailed Metrics
OWL ESG KPIs OWL ESG Benefits
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OWL COVERAGE & FREQUENCY
Actionable Data Coverage
• OWL ESG provides scores, ranks, & percentiles on
over 25,000 companies worldwide
• OWL ESG covers over 95% of the weight of most
popular indices
• OWL ESG offers the best coverage of small-cap,
emerging market, and frontier market companies
• OWL ESG scores, rankings, & percentiles are
updated monthly rather than yearly
• OWL ESG metrics incorporate the latest available
data for each company covered
• OWL ESG empowers investors to make decisions
based on fresher inputs
• OWL Detailed Data available quarterly, semi-
annually, or annually depending on data type
MAKE AN IMPACT
CONTACT
BENJAMIN WEBSTER
CEO & President
310-704-6772
OWL Analytics & Investment Research
312 Arizona Avenue
Santa Monica, CA 90401
424-800-3834
www.OWLanalytics.net
ESG Consensus Scores& Detailed Metrics
OWL ESG™
This document, including any attachment(s) ("package"), is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase,any interest in any investment vehicle managed by OWL Analytics & Investment Research, a division of New Millennium Macro, LLC ("OWL Analytics & InvestmentResearch"), or as an official confirmation of any transaction. Such an offering may only be made by means of a private placement memorandum or other disclosuredocument. Nothing in this package constitutes investment advice. This material is intended for sophisticated investors only, particularly financial advisors and assetmanagement companies and should not be forwarded without express written consent. Performance statistics shown herein are back-tested numbers and OWL Analytics &Investment Research makes no representation as to their accuracy. OWL Analytics & Investment Research does not accept any responsibility or liability arising from the useof this package. The package is highly confidential and should not be shared or distributed unless express written consent is provided by OWL Analytics & InvestmentResearch.