Refinitiv Updates ESG Scoring Methodology to Address Bias
April 16 2020 - 9:15AM
Dow Jones News
By Dieter Holger
Refinitiv said late Wednesday that it had updated its
environmental, social and governance scoring methodology to address
metrics relevant to industries and company size.
The financial data provider, which is owned by Blackstone Group
Inc. and Thomson Reuters Corp., said it would now assign a score of
zero to companies that don't report on metrics key to their sector
and that certain figures will matter more or less to certain
industries.
To address size bias, it said it would put more weight on small
companies than large companies since bigger firms tend to have more
news reported.
"Refinitiv is not opining about what 'good' looks like--we let
the data determine this--but our criteria and data model have been
enhanced to accommodate an objective approach to materiality and
transparency stimulation," said Leon Saunders Calvert, head of
sustainable finance at Refinitiv.
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
April 16, 2020 09:00 ET (13:00 GMT)
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