In 1972, when Environmental, Social and Governance (ESG) was a nascent field, it had no assets and had a way too long way to spike. However, with time, the field bloomed in unimaginable ways and by now, it has been projected that by 2025, one out of every three investments made will be in the ESG. With such a rate, the ESG will have nearly $53 trillion worth of assets. Every company is rated by ESG and a lot of people wonder on what basis are these companies scored for ESG ratings. The infographic below explains in detail the ESG ratings.
There are various sources through which the MSCI ESG research department gathers authentic data such as, company filings, NGOs, government, media sources and alternative data. After that, case studies are done and calculations are made. ESG has its own scorecards and standards and companies that fit in the standards are awarded with scores which are then used to form official ratings.
Infographic by: Visualcapitalist.com
