Barclays Adds ESG Assessment and Indicators to its Fundamental Research

(Credit: Pixabay)

by | Mar 24, 2020

This article is included in these additional categories:

(Credit: Pixabay)

Barclays Research has announced the launch of “ESG Fundamental Research,” which highlights the environmental, social, and governance impact of companies under coverage by Barclays’ analysts.

“Prior to the outbreak of Covid-19, finance was already at a tipping point, where the integration of sustainability concerns was becoming the norm,” said Jeff Meli, Global Head of Research. “Today’s launch of Barclays’ Fundamental ESG Research is an opportunity to reflect on whether Covid-19 will accelerate this trend even further – creating a greater sense of urgency and responsibility toward everything from consumer behavior to climate change, supply-chain practices and the future of work and mobility – and potentially alter the nature of the investment process as a result.”

Barclays’ new Fundamental ESG Research will offer clients a multi-dimensional analysis of where the companies Barclays covers sit on the spectrum of ESG performance, leveraging the existing research of fundamental analysts to assess how ESG attributes affect financial risks and valuations. On a sector by sector basis, starting this month, Barclays Fundamental ESG Research will launch fundamental research reports that incorporate the new ESG assessment and indicators for each company under coverage.

Barclays Research will:

  • Generate a set of indicators (a five-point scale for environmental, social and governance) derived from aggregated indicators of leading ESG providers
  • Seek to deepen understanding of a company’s ESG credentials by identifying divergence in views between Barclays analysts and that of leading ESG indicator providers
  • Evaluate perceived ESG risk, and assess the impact of ESG considerations on security pricing
  • Produce stand-alone reports on key topics and themes that apply this new ESG framework to industries as diverse as oil and gas, pharmaceuticals, airlines and autos, all of which are likely to experience fundamental shifts as Covid-19 unfolds

Earlier this month, we reported how institutional investors unanimously confirm that ESG risks and opportunities played an increasingly important role in their investment decisions and their evaluation of portfolio companies during the past 12 months. This is according to Morrow Sodali’s annual Institutional Investor survey.

Additional articles you will be interested in.

Stay Informed

Get E+E Leader Articles delivered via Newsletter right to your inbox!

This field is for validation purposes and should be left unchanged.
Share This