The two organizations say their partnership will allow investors to seamlessly embed environmental risk management into their everyday decision-making, alongside traditional financial metrics. This will create an integrated approach to analyzing the environmental performance and associated financial risk of all companies across the major investment indices, the companies say.
The California State Teachers’ Retirement System (CalSTRS), one of the world’s largest public pension funds, is already using Trucost data over the FactSet network.
Trucost collects and validates environmental data from organizations, resulting in what it calls the world’s most comprehensive data on corporate environmental impacts, covering greenhouse gases, water, waste, pollutants and natural resource dependency. Its data has been used to analyze the environmental performance of funds worth over $2.7 trillion, with clients including Standard and Poor’s, UBS and Vanguard.
FactSet offers a single interface to help companies monitor the global markets, public and private companies, and equity and fixed income portfolios. The company also provides a wide variety of data including fundamentals, estimates, economic information, ownership and M&A intelligence.
“The current era of natural resource constraints and rising commodity prices combined with the trend towards national policy on ‘polluter pays’ regulations make it increasingly important to enable mainstream investors to manage environmental risk,” Trucost senior vice president James Salo said.
“And it’s not just about managing risk,” Salo added. “Following our work with Newsweek on their Green Ranking of America’s largest companies, we have seen outperformance of almost 10 percent among the top 100 companies versus the S&P 500 over the last two years.”