GMI and Trucost announced a strategic partnership to incorporate Trucost environmental performance data into the GMI Analyst research platform. The agreement strengthens GMI’s existing governance analysis and will enable GMI clients – leading institutional investors, banks, insurers, auditors, regulators and corporations – to incorporate a measure of environmental risk alongside traditional financial metrics.
Trucost data on environmental risk includes analysis of carbon, water, waste, pollution and natural resource dependency, in order to identify efficiencies and areas for reducing material environmental risks. The Trucost analysis also identifies where data gaps exist in terms of tracking and reporting and compares environmental performance of companies against peers, sectors, investment benchmarks and portfolios.
GMI is the world’s leading provider of risk research on public companies with a focus on Corporate Governance and Environmental, Social & Governance (ESG) ratings and research. GMI research covers more than 20,000 companies, with more than 4,000 ESG ratings, in all developed markets and many emerging ones. GMI’s clients have found a valuable link between GMI ratings and major negative events, such as regulatory actions, shareholder litigation, material financial restatements and financial distress, that impact company value.
Given the potential impact of environmental mismanagement on a company’s value, it has become increasingly important for investors and corporate stakeholders to have a better understanding of which companies are actively managing risks around environmental issues. The Trucost data will bolster GMI’s existing ESG metrics by offering more visibility on when a company’s environmental performance is below average for its sector, or when it hasn’t disclosed environmental data publicly.
Jack Zwingli, CEO of GMI said,
Environmental risk is recognized as impacting corporate balance sheets, long term financial performance and as a cause of negative events that damage reputations and value. For that reason, investors and corporations are actively incorporating ESG into their decision making and reporting. The Trucost analysis greatly strengthens our existing governance research and ratings. We are looking forward to a strong partnership with Trucost, one in which we not only share Trucost’s unparalleled content and analysis with our clients, but also collaborate with Trucost on a common goal of increasing environmental risk management transparency in the marketplace.
Richard Mattison, chief executive of Trucost said,
Providing Trucost data over the robust and comprehensive GMI Analyst platform enables the investment community to integrate environmental risks and opportunities into their traditional analysis. A company that manages its environmental efficiency and reporting to a high standard is a good proxy for all round good management. We look forward to working alongside GMI to help investors achieve a sound measure of environmental risk alongside their existing risk metrics.