Can you avoid buying controversial ESG products? Perhaps, you do not have the time to study the details of the various methodologies of all ESG score providers. A great exercise is to seek common ground while shelving differences. We believe consensus-based approaches can help you in your ETF selection. Those approaches are based on the ESG experts’ average opinion on a company and the divergence (or convergence) of those opinions.
Consensus ESG score
By choosing to use a consensus score, you can benefit from the insights of the whole industry instead of limiting your scope to a single house’s ESG philosophy – which might not be in line with the rest of the industry.
At TrackInsight, we provide consensus-based ESG scores designed by our partner Conser, a Swiss-based independent ESG verifier, on more than 3,500 ETFs worldwide. The assessments from several and independent sources reflect the market opinion about a given company relating to its ESG practices. The average of the opinions and its dispersion (which reflects its reliability) allows to express a single synthesized rating. We combine the results of this analysis with our data on ETF portfolio holdings to determine a final sustainability grade from A+ to D for each ETF.
How do I find my ESG score?
The ESG score is detailed on the fund page in the ESG consensus analysis section.
You can find the detail of your ETF’s exposure to controversies and sensitive sectors on the fund page in the ESG look-through section. This data helps you shed the light on the specific ESG exposure of a given ETF. It is split into two sections: the “ethical review” and the “impact review”.
The “ethical review” shows the major controversies in pictograms. They are colored in red when the aggregated exposure of the portfolio reaches a defined threshold, set at 1%. Thus, as long as the aggregate exposures of the portfolio in the detailed categories remain below 1%, pictograms stay green. Only the “cluster bombs” category has a stricter threshold set at 0%.
The “impact review” provides a detailed exposure of the ETF portfolio in regard to climate change industries, sensitive sectors and international norms in percentage.
This module relies on data provided by Conser and ETF portfolio holdings sent by ETF issuers.
Check how your ETF scores in the light of industry consensus: www.trackinsight.com