The ESG Consensus® methodology provides the most representative market perception of an investment’s sustainability risk. The assessment is based on multiple recognized ESG sources. It determines the average and the convergence of these independant ESG opinions in order to guarantee reliable and unbiased results.
Conser uses more than 20 different recognised ESG sources to capture ESG features and exposure to controversies. As an illustration, the ESG Consensus® for large caps is typically built from more than 10 independent ESG sources.
The ESG consensus® covers a universe of more than 5’500 companies and 170 countries. The coverage of large caps and of OCDE countries is close to 100%. The treatment of emerging markets and small & mid-caps is constantly growing.
Easy to understand
The ESG Consensus® is built from the aggregation of multiple external and normalized sources (see table above - ex: BBBBBCCCCCC). The result gives a quick overview of the ESG quality of a company or a country as well as of the convergence or divergence of opinions.
Neutral and comparable output
Each independant ESG source is normalised and equally weighted to build the ESG Consensus®. The combination of these two procedures guarantees complete unbiased results.
Automated and systematic process
Each ESG source is reviewed and updated monthly for the full covered universe. The evolution of the ESG Consensus® for each company or country is tracked.
Easy to use
The final result provides a rapid understanding and visualisation of whether the invested positions are above or below average with regard to sustainability objectives.
A company/country with a Best in class ESG Consensus® has a majority of ESG sources giving a positive opinion on its sustainability level. Best in Class issuers are considered for investment strategies which claim to be responsible/sustainable. Lower Grade companies/countries have a majority of negative ESG opinions and are considered to be below average in terms of sustainability.
The ESG Consensus® strength indicates the level of convergence of opinion among the independent ESG sources. A Strong ESG Consensus is attributed when more than 85% of the sources identified agree on the sustainability level of a company/country. A Low Consensus is given when there is a low convergence between sources, or when there are very few sources available.
We aggregate independent and complementary ESG sources such as : sustainable ratings providers, data from government agencies, sustainable funds universe, sustainable portfolio managers’ assessments, sustainable indices and financial data providers.