The Problem
Environmental, Social and Governance, or ESG, used to be a niche investment strategy – but no more. Investor demand for ESG-related products has proliferated and forced all financial firms, whether investors or issuers, to focus on how they can address the changing requirements imposed on them. Today, companies must step up to meet these key demands or risk losing market share to competitors.
At the same time, financial markets regulators in the U.S. and abroad have taken notice of ESG investing and have required greater rigor from regulated firms in disclosure and management of ESG practices. Scrutiny has increased of both how ESG factors are considered in making investments and whether such factors are consistently applied in any related votes. Regulators increasingly expect an integrated ESG framework be part of a firm’s polices and procedures.
A cogent, comprehensive approach across both investing strategy and proxy voting is well-advised.
The Solution
Egan-Jones, through its proxy advisory services has been involved in the development of ESG matters for the past ten years and is well-equipped to address client needs. Using Egan-Jones Ratings’ Climate Change/ESG Scores, you have an easy-to-understand yet thoughtful approach for assessing issuers’ current positions relative to peers and the trend in those positions. Egan-Jones’ proprietary methodology rates issuers across a range of specific Environmental, Social and Governance factors and provides a numerical assessment which can readily be incorporated into a client’s investment process. Egan-Jones’ universe of coverage extends to over 2,500 public companies and the firm’s methodology can be applied to private and other public companies on request. When it comes time to vote on behalf of your firm’s investments, Egan-Jones Proxy Services can leverage the Climate Change/ESG Scores to provide seamless voting consistent with your firm’s desired approach.
How we can help
Prospective clients have often asked how we can help them and what areas we consider are particularly
strong. In response, below are the areas worth reviewing:
Private Placement Ratings – assisting investors access private markets via ratings on private placements.
Subscription Ratings – we have had a strong track record in providing early, accurate independent credit
rating research.
Climate Change / ESG Scores – an assessment of entities’ current and prospective scores.
Independent Proxy Research and Recommendation/Voting – assisting fiduciaries in fulfilling their voting and record-keeping obligations.
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