Objective

• An Asian investment bank sought to integrate sustainability into its research franchise
• The bank wanted to develop a proprietary ESG rating framework and create ESG tear sheets for 900 companies under its coverage
  

Crisil Integral IQ solution

• Our team created Excel-based templates for the ESG scorecard and tear sheet
• For the scorecard, we designed a scoring methodology for each identified Sustainability Accounting Standards Board (SASB) material metric, based on three aspects:Thereafter, we built end-to-end credit models to assess the investment rationale and risks of each company
  • Company-level disclosure
  • Metric performance
  • Missing data view - gathering data for undisclosed metrics from sources such as regulatory bodies, industry consortiums, NGO campaigns and news monitoring
• The final score was determined by assessing all the three aspects
  
• The tear-sheet template consisted of a company brief, an ESG assessment summary and a sheet each for E, S and G metrics based on the SASB materiality framework
  • The tear sheet captured two years of sustainability data, as well as qualitative commentaries from company filings and secondary sources such as government portals, industry data sources, news articles and other public disclosures
    

Client Impact

• Our ESG tear sheets fill gaps created by inconsistent disclosures in company filings, providing a comprehensive view
• The scoring methodology was flexible, allowing analysts to incorporate their views across metrics
• With our support, the client was able to extend ESG analysis to 900 stocks within 12 months