1. ESG Data – from CSR reporting to investment analysis and decision making
Tamara Hardegger, Product Manager ESG – ASSET4
Thomson Reuters

2. About Me Background Thomson Reuters MA, Intl Studies, Geneva.
CSR Cert of Adv Studies
Thomson Reuters
2008: Account Manager, IM & Corporates, Geneva
2010: ESG Specialist, London
2012: Product Manager ESG (for former ASSET4 company)

3. Thomson Reuters Corp (TRI.N)
“Leading source of intelligent information”
B2B, largely subscription based and via electronic media
Financial, legal, accounting, IP & sciences news
Financial & Risk (7.4 bn $, 55%) provides investors and companies with trading, investment and risk mgmt data and news.
In Nov `09, Thomson Reuters aquires ESG information and analytics provider ASSET4.

4. Our ESG Data collection
Our 130 analysts scan and filter public information, standardizing it and filling in over 750 data points, which are calculated into 250 relative KPIs
Company
Websites
NGO
Websites
Stock Exchange Filings
CSR
Reports
News
Sources
Annual
Reports
Publicly sourced and standardized ESG Data on 4000 companies

5. Data Framework Default Data Structure Overall Economic Environmental
Company overview
Economic
Environmental
Social
Corporate Governance
Pillars
Client Loyalty
Performance
Shareholders Loyalty
Resource Reduction
Emission Reduction
Product Innovation
Employment Quality
Health & Safety
Training & Develop.
Diversity
Human Rights
Community
Product Responsibility
Board Structure
Compensation Policy
Board Functions
Shareholders Rights
Vision and Strategy
Categories
250 indicators (calculated from data point values)
Indicators
Data Points
> 750 data points
Link to public data sources (Raw Data)

6. Examples Percentage of women managers
Shareholder Rights Policy compliance
The total compensation package of the senior executive.
Total CO2 and CO2 equivalents emission in tonnes
Total direct and indirect energy consumption in gigajoules.
Number of full- and part-time employees.
Percentage of women employees.
Total salaries and benefit expenses (staff cost).
Research and development costs.
Does the company make donations in cash or in kind?
Total training costs from all the training performed by all employees.

7. Challenges
Reporting Standards: No mandatory standards yet, slowly emerging
Data availability: Offer & Demand not in line
Sustainability Ratings: How to measure sustainability? Which indicators to choose?

8. My day job: Integrating ESG DATA
How to make ESG data accessible and interesting for ten-thousands of mainstream Investment Management users of our financial information platforms?

9. My day job: Integrating ESG Data
How to make ESG data accessible and interesting for ten-thousands of mainstream Investment Management users of our financial information platforms?

10. How is ESG data used and integrated? Example of typical IM workflow
Research: Definition of KPIs based on customer demand & materiality
Creation of customized ratings and models in our platform
Analysis / Screening via direct data load into Excel and creation of custom reports
New „ESG compliant“ universe of stocks defined.
Distribution of rating reports internally and to customers (asset owners)

11. Viewing, analysing and configuring indicators and screens (ratings)

12. Company ESG view (model)

13. Sector Comparison

14. Sector Comparison

15. Charting

16. Women in the workplace

17. Women in the workplace
We are starting to have enough data history only now.
Result: Companies are doing more to track and quantify the number of women they employ. Progress is slow, but in the right direction. European companies disclose more but perform worse than their US counterparts.
Companies with > 20% women outperform!
Ebook: