OWL ESG™ - data. · PDF file OWL ANALYTICS SUMMARY OWL Analytics & Investment...

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Transcript of OWL ESG™ - data. · PDF file OWL ANALYTICS SUMMARY OWL Analytics & Investment...

  • ESG Consensus Scores & Detailed Metrics

    OWL ESG™

  • 1

    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.

  • 2

    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.

  • 3

    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.

  • 4

    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

    Overlap Data 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

  • 5

    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

  • 6

    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

  • 8

    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

  • 8

    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

    [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 & Investment Research"), or as an official confirmation of any transaction. Such an offering may only be made by means of a private placement memorandum or other disclosure document. Nothing in this package constitutes investment advice. This material is intended for sophisticated investors only, particularly financial advisors and asset management 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 use of this package. The package is highly confidential and should not be shared or distributed unless express written consent is provided by OWL Analytics & Investment Research.

    mailto:[email protected]