1 April, 2022 / Analysis
ESG tools addressing ratings and reporting launch
By ESG Clarity
MainStreet Partners and Impact Cubed hope to alleviate greenwashing concerns
Three ESG tools have launched over the past few weeks aiming to reduce the confusion surrounding ESG ratings.
The first is from MainStreet Partners, whose fintech platform ESGeverything looks to help wealth managers, asset managers and asset owners understand and manage ESG risks in diversified portfolios and avoid greenwashing.
ESGeverything analyses more than 4,200 funds and ETFs and more than 5,300 companies across 89 countries to create ratings between one and five, where three represents an ‘ESG certified’ portfolio. After uploading your portfolio to obtain a rating, users can use the tool’s filters to alter the portfolio and improve ratings, and also create a report of the portfolio.
Rodolfo Fracassi, managing director at MainStreet Partners, said: “We can share our proprietary ratings and tools to a much wider audience of investors thanks to the technology of ESGeverything.com. Our vision is to ensure that investors of all sizes, whether small, mid-sized or large, can have access to professional ESG tools, can be fully compliant with industry regulations and improve the sustainability profile of their portfolios”.
Data platform Impact Cubed has also launched new tools, allowing investors to report on ESG funds and to see the climate-related impact of their investments.
As well as aiming to alleviate greenwashing concerns, the tools allow pension funds, wealth managers and family offices to compare and validate external managers’ ESG performance and shakeout those with little impact.
Using more than 50 climate metrics, Impact Cubed’s new climate solution provides investors with insights on positive and negative climate impacts, low carbon transition, and physical climate risks.
More investors are asking what climate-related activities are being financed by their investments and more regulators are requiring clearer climate disclosure by companies and funds, including Article 8/9 and TCFD.
“Investors are keen to understand which companies will lead or lag in the race to a low carbon economy, so we designed tech-enhanced models that have superior regional insights on business activities and operations,” said Impact Cubed CEO Libby Bernick.
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