Big Data: Getting Granular with ESG Factors

With the growth in sustainable investing, there's been a surge in data on environmental, social and governance (ESG) factors over the past few years. Demand for ESG data is rising as asset managers look to incorporate ESG factors such as low-carbon emissions or gender diversity on boards into their investment analysis and decision-making processes. Fund managers, including BlackRock and Vanguard, are offering sustainable funds and exchange-traded funds (ETFs) based on sustainable indexes to capture assets from millennials and women. But the uptake has moved beyond specialty funds and has spread to pension funds, particularly in Europe, looking for long-term returns, reported Bloomberg Intelligence in April. "The financial cost of environmental, social and governance (ESG) performance and better disclosure is spurring uptake," wrote Bloomberg Intelligence in "Sustainable Investing Grows on Pensions, Millennials."