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How to Improve Your ESG Score Using Big Data

July 06, 2021

For analysts, governing bodies, and even consumers, a company is no longer considered successful or reputable based solely on its profits or how innovative its services are.

External and internal stakeholders—from clients and employees to investors and government regulators—increasingly want to know how a company stacks up across a whole range of environmental, social, and governance (ESG) issues. And that means the measure of a company isn’t just about the size of its bottom line or the number of followers on its social media; rather, a company’s financial performance and customer base are merely two factors of success alongside its ESG score.

ESG scores are important because many financial firms now consider these scores when deciding whether or not to approve a loan. Investors now look at these scores before deciding to buy shares. And potential business partners now take these scores into account before deciding to enter into business agreements.

But how exactly is your company’s ESG score determined? A third-party evaluation firm uses a scoring methodology and calculates your score based on a wide array of ESG factors such as emissions and environmental initiatives, human rights, your shareholders and board members, and more.

And, yes, the ESG scores of the companies you partner or merge with, acquire, or interact with in some business capacity can either help or harm your own ESG score.

Many companies are turning to ESG intelligence tools to better assess how well they’re performing on a number of ESG issues, as well as to gain a deeper understanding into the ESG performance of current and prospective partners, potential ramifications of c-suite hires, or the ESG scores of possible acquisitions and mergers.

Of course, data gaps can riddle your ESG intelligence, making it incomplete and dampening the accuracy of your insights. As you look for ways to better understand your ESG score and how your business dealings and decisions will impact it, you need to ensure that any potential data gaps are closed.

Nexis Data as a Service (DaaS) closes your data gaps and supplements your existing ESG intelligence with enriched, comprehensive coverage of ESG factors and behaviors across all entities and industries. With the easy-to-integrate datasets available from Nexis DaaS, your ESG intelligence can deliver deeper, more accurate insights—so that you better understand precisely how certain moves and decisions will either harm or boost your ESG score.

Here are just a handful of the data types available with Nexis DaaS:

PEPs, sanctions, and watchlists

Nexis DaaS offers data on 1.5 million politically exposed persons (PEPs), as well as international sanctions and more than 1,400 watch lists and blacklists originating from enforcement agencies in 240 countries and territories.

Company information

With Nexis DaaS, feed the information of 280 million global public and private companies—including key financial stability indicators and corporate hierarches, as well as legal entity data for DBA names—directly into your ESG intelligence.

Legal data

Company regulatory and legal information are especially important to the accuracy and depth of your ESG intelligence. Nexis DaaS provides data on civil and criminal cases across multiple jurisdictions, and it also gives you data on cases from the International Court of Justice.

Licensed print, broadcast, and web news

Nexis DaaS provides an extensive collection of media data, including content from leading daily newspapers and transcripts of radio and television broadcasts. You can also access over 80,000 news sources from more than 100 countries in 75 languages.

Online news, blogs, and social commentary

The media data from Nexis DaaS goes beyond traditional radio and television sources. It includes content from social commentary and digital publications, magazines, trade journals, newswires and press releases.

Conclusion

The datasets available with Nexis DaaS can help you gain deeper ESG insights and plug your existing data gaps. To learn more about how your ESG intelligence can benefit from the unrivaled breadth and depth of data available from Nexis DaaS, go here.