OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a...

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ESG Consensus Scores & Detailed Metrics OWL ESG™

Transcript of OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a...

Page 1: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

ESG Consensus Scores& Detailed Metrics

OWL ESG™

Page 2: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

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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.

Page 3: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

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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.

Page 4: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

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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.

Page 5: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

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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

Page 6: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

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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.

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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

Page 10: OWL ESG™ - data.bloomberglp.com · OWL ANALYTICS SUMMARY OWL Analytics & Investment Research is a data and indexing company that offers detailed data and metrics on the environmental,

MAKE AN IMPACT

CONTACT

BENJAMIN WEBSTER

CEO & President

310-704-6772

[email protected]

OWL Analytics & Investment Research

312 Arizona Avenue

Santa Monica, CA 90401

424-800-3834

[email protected]

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.