As a growing number of people look to make more socially responsible investing decisions, amid sustainability and environmental challenges, Thomson Reuters today announced the enhancement of its Eikon platform with the addition of its Insight360 app.
Eikon features an environmental, social, and governance (ESG) component, where related tools can be used by buy-side traders to make socially responsible investment decisions.
As part of the enhancement announced today, the Insight360 app developed by TruValue Labs, Inc. aims to complement the range of ESG solutions within Eikon, and provides ESG-data on 7500 publicly-traded securities.
Changing regulations, market conditions, and political factors are driving greater awareness and scrutiny of ESG-related metrics among asset managers globally.
Managers lean on ESG data
The data available includes real-time information on the public companies, and research and events relevant to sustainability. As such ESG data is becoming increasingly used by asset managers.
Thomson Reuters described in a statement regarding the news that the amount of ESG financial data that is used in the asset management industry has risen by 45% over the last 4 years and represents $59 trillion of assets under management (AuM).
“Changing regulations, market conditions, and political factors are driving greater awareness and scrutiny of ESG-related metrics among asset managers globally,” said Ranjit Tinikar, managing director and head of advisory and investment management at Thomson Reuters, commenting in a statement.
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Mr. Tinikar added: “Through our collaboration with TruValue, Inc., financial institutions now have access to a set of comprehensive data solutions to analyze sustainability and ESG factors, and apply them to their relevant investment decisions. This further demonstrates our ongoing pledge to offer powerful solutions that drive informed investment strategies for our clients.”
Mandates reflecting trends
In the United States, there are large pension funds and institutional investors that have raised their ESG standards for investment decisions in recent years.
This trend follows the ongoing increase in awareness by consumers on sustainability benefits, such as ‘green’ and ‘eco-friendly’ products across industries (including finance), and their overall effect on the environment and economy.
The announcement from Thomson Reuters also mentioned that ESG is relevant in Europe as mandates from the EU require firms with over 500 staff to make related disclosures about the environment and other factors.
We are proud that Thomson Reuters recognizes the power and value of Insight360 technology for extracting meaningful signals from the noise.
Social responsibility risks
TruValue Labs CEO and co-founder Hendrik Bartel added in a joint statement: “Corporate risk comes in many forms and ‘extra-financial risk’ – including regulatory concerns, social/cultural backlash, product liabilities, intellectual property portfolios, employee actions, and political risk- all impact performance.”
Mr. Bartel added: “We are proud that Thomson Reuters recognizes the power and value of Insight360 technology for extracting meaningful signals from the noise. ESG, extra-financial risk and Corporate Social Responsibility are critical factors in today’s investment decisions and a meaningful differentiator to investors and capital market players looking for a competitive edge.”