Investor Use

Investors & SASB

Today, with market values at multiples of book value, investors are increasingly aware of their exposure to how companies manage intangible assets and an array of other concerns often outside the scope of traditional financial reports, including environmental, social, and governance (ESG) issues, which research shows can affect the long-term value of companies.

In response to this trend, investors and analysts are increasingly looking beyond financial statements and seeking out sustainability data to enhance their understanding of related risks and opportunities.

SASB standards and metrics can help investors benefit from environmental, social and governance (ESG) and other sustainability data that is comparable, consistent, and financially material—empowering them to make better investment and voting decisions.

Investor Advisory Group

The Investor Advisory Group (IAG) comprises leading asset owners and asset managers who are committed to improving the quality and comparability of sustainability-related disclosure to investors.

How Investors are Using SASB Today

In this case study, learn how Breckinridge Capital Advisors uses SASB’s materiality framework to bring focus to ESG considerations in its fundamental fixed income analysis.

This case study illustrates how Columbia Threadneedle used SASB’s framework to build its own “responsible investment” ratings system and drive engagement.

This case study shows how Glenmede uses SASB’s materiality framework to develop ESG Momentum as an additive, uncorrelated factor in quantitative, multifactor models.

This case study illustrates how Partners Group’s adaptive approach for integrating SASB standards into their due diligence process has improved the efficiency of their ESG analyses, and shares lessons learned along the way.

In this case study, learn how PIMCO augments traditional credit analysis with a SASB-informed approach, and how it applies this ESG integration strategy in the commercial banking industry to better manage risk and return.

Leveraging SASB’s focus on financial materiality, PineBridge Investments defines sector-specific, climate-stress scenarios that allow it to readily incorporate key climate exposures alongside traditional risk-adjusted portfolio metrics, enhancing its analysis and facilitating more effective mitigation of the risks associated with a transition to a low-carbon economy. See how PineBridge Investments uses SASB’s framework to help build TCFD-ready, climate-resilient portfolios.

This case study shows how UBS constructed the Aspiration Redwood Fund based on their core valuation philosophy, augmented by new tools—including the SASB Materiality Map™—enabling a sharper focus on sustainability issues that can impact value.

This case study illustrates how ESG considerations complement UBS’ fundamental equity analysis and capital allocation decisions, and how the development of their proprietary tools used in these decisions were informed by SASB.

ESG Integration Insights presents case studies from asset owners and managers, showcasing best practices for using SASB standards and tools in investment decisions across asset classes. This Omnibus Edition was published in Q4 2017.

ESG Integration Insights presents case studies from asset owners and managers, showcasing best practices for using SASB standards and tools in investment decisions across asset classes. This Premier edition was published in Q4 2016.

Ontario Teachers’ Pension Fund and Nordea Asset Management discuss with SASB and PRI how these firms are using SASB standards to fulfill their PRI signatory commitments.

Russell Investments
Materiality Matters: Targeting the ESG Issues that can impact performance – the material ESG score

“Russell Investments has developed a new way to measure a company’s ESG score. Drawing from the metrics developed by industry leaders Sustainalytics and SASB, our new material ESG scores are designed to identify and evaluate only those issues that are financially important to a company. “

Related

SASB standards enable ESG integration across multiple asset classes

Public Equities

  • Data-driven corporate engagement
  • Input to fundamental equity analysis
  • Construct alternative indexes

Corporate Fixed Income

  • Input to credit analysis and internal credit rating assignment
  • Assess quality of disclosure for insight into risk

Private Equity

  • Identify focus areas for fund and portfolio company due diligence
  • Report to GPs and LPs on performance on material ESG topics

Real Assets

  • Use SASB’s Infrastructure sector standards to guide risk assessment and performance reporting for real assets