Login Sign Up

Sustainable Investing: Environmental, Social & Governance (ESG)

Invest in shares that do good

Understanding sustainable investing

 Sustainable investing, also known as ESG investing, is an approach that integrates environmental, social, and governance (ESG) factors into investment decisions. Unlike traditional investing, where the sole objective is to maximise returns while minimising risk, ESG investment strategies seek to achieve both financial performance and a positive impact on society and the planet. There is growing recognition that ESG factors are not just ethical considerations—they are economic factors that can influence a company’s long-term performance and resilience. Businesses that manage their ESG risks effectively are often better positioned for sustainable growth.

The Three Pillars of ESG Investing

EnvironmentalEvaluates how a company affects the environment and manages its ecological footprint.
  • Air pollution and carbon emissions
  • Climate change and greenhouse-gas management
  • Water and wastewater management
  • Energy efficiency and resource use
SocialAssess how the business treats its employees and the community.
  • Employment conditions and labour standards
  • Employee and community engagement
  • Diversity, equity, and inclusion practices
  • Customer welfare and human rights
GovernanceAnalyse the systems and policies that guide corporate leadership and ethical decision-making.
  • Executive's pay and accountability
  • Governing structure and independence
  • Corporate ethics and anti-corruption policy
  • Transparency in political and business practices

How ESG Risk Ratings work

We're partnered with Sustainalytics, an independent ESG and corporate governance research firm, so it's easier to develop and invest with a socially responsible strategy.
ESG Risk score

A sophisticated methodology is used to rate each company based on its exposure to environmental, social, and governance risks and its effectiveness in managing those risks.

  • Uses advanced methodologies and data-driven models.
  • Leverages AI-powered monitoring that tracks over 60,000 media sources and up to 1 million news articles daily.
  • Compares companies across peers and sub-industries with integrated corporate governance research.
  • The total ESG risk score is updated daily and reflected in your investment dashboard or stock summary cards.
  • Lower ESG scores indicate stronger risk management and more sustainable business practices.
ESG Controversy rating

In addition to risk scores, a controversy rating helps investors identify companies involved in incidents that could harm people, the environment, or their operations.

  • Rated on a scale of 1 to 5, with 5 indicating the most severe controversies.
  • Covers issues such as environmental violations, social misconduct, and governance scandals.
By understanding both risk and controversy ratings, investors can make informed ESG investment decisions that align with their values while managing potential risks effectively.

Why invest with ESG Risk Ratings?

ESG top-rated companies

We've made it easy to build a portfolio aligned with your views on environmental, social and governance issues. Explore some of the companies with top ESG Risk Rating score.

Keen to learn more about ESG investing?

Have a question for us?

Ask us or get your queries sorted here
Invest withtransparencytoday