Muti-asset index, data and analytics provider FTSE Russell has teamed up with corporate research firm Sustainalytics, with the partnership looking to integrate ESG into investment strategies.
The two companies will be working together to develop new FTSE Russell ESG indexes using the new Sustainalytics ESG Risk Ratings.
They aim to develop a range of ESG indexes based on the Russell 1000, 2000 and 3000 indexes suitable as the basis for those implementing ESG considerations into their investment strategies.
There is a growing trend among asset owners to integrate sustainability and environmental, social and governance considerations into their investment approach, according to FTSE Russell.
The firm says the teams are working to target the first product launch for the first half of 2019.
“This exciting new partnership deepens our relationship with Sustainalytics, a leading global provider of ESG research. This is an exciting development for our clients as it will provide new tools and benchmarks,” Mark Makepeace, CEO of FTSE Russell said.
“FTSE Russell has been a leader in sustainable investment for nearly two decades and has been supporting the growing demand for ESG integration into passive strategies.”
Mr Makepeace added the partnership allows FTSE Russell to provide a greater selection of options and choices to meet client demand.
“We are delighted to partner with FTSE Russell to combine our leading ESG Risk Ratings with FTSE Russell global indexes,” Michael Jantzi, CEO, Sustainalytics said.
“The focus will initially be on the Russell US Indexes which has a leading position amongst institutional and retail investors and the partnership will provide valuable tools for ESG integration and product creation.”
Sustainalytics has worked with FTSE Russell before, collaborating on custom indices.
FTSE Russell says the Sustainalytics has grown its capabilities and presence in the ESG market.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.
You can contact her on [email protected].
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