This month at Ethos we're excited to release enhanced data transparency for our customers, PDF versions of reports, better "real-world" metrics for client portfolios, expanded fund coverage, and new company-reported data.
Check out the product updates below, or skip to the data updates.
Greater data transparency
We're committed to data transparency and enabling our customers to easily use our data. This month we made it easier to see top metrics driving a rating for any company or fund:
Customers can also see all metrics driving a rating for any company or fund:
We added statistics on the data we use for every company. Statistics include total metrics used in a rating, percent of metrics that are original vs. peer average, date of last update made to company data, and types of data used:
Customers can also see the detailed, bottom-up calculation for any company rating on Ethos:
Report PDFs
This month we added firm-branded PDF reports on any company, fund, or portfolio (Advisor clients only). To create a PDF of a company or fund, select 1-page PDF from your account under Research:
Create PDF versions of reports by selecting the "PDF" button when viewing a report:
Better featured metrics
We improved our "real-world" metrics to make them easier for Advisors to share with clients. We also added new real-world metrics, including Tons of waste avoided and Gallons of water saved:
Data updates
This month we made several updates to our data coverage and ratings. The following is not a full list but covers material changes that affect company, fund and portfolio ratings on Ethos:
Added ~300 new ESG funds to our database. Customers can find all ETFs and mutual funds that Ethos covers in their account under Research: Funds. Example new funds include Pictet Quest Europe Sustainable Equities Fund, AVDR US Large Cap ESG ETF, and the Virtus AllianzGI Global Sustainability Fund
Updated metrics for inclusion in ESG and impact funds. We updated two Ethos-created metrics that analyze how reputable ESG and impact funds view companies:
- Inclusion in reputable ESG funds and indexes: this metric assesses a company's reputation and rating with reputable ESG funds, measured by percentage of ESG funds holding the company. This month we improved the analysis to only consider ESG funds that align with a company's geography and market cap; i.e., when measuring the percentage of ESG funds holding a company, we start from a tailored set of potential ESG funds with holdings in the company's geography and market cap
- Inclusion in reputable impact funds and indexes: this metric assesses a company's reputation and rating with reputable impact funds. 'Impact' funds are those that seek to address a specific global problem (such as climate change) by investing in companies actively working to solve those problems. These funds are distinct from 'ESG' funds, which invest in companies that meet ethical criteria set by the fund. We made a similar update for this metric as the one above; the metric now only considers potential impact funds that align with a company's geography and market cap
Updated company controversies. We scanned news media for major company controversies in early 2021 that our monitoring had not previously captured. This resulted in several new controversies being added to our database, such as Glencore's alleged corruption in the DRC (see Glencore's profile and data here).
Updated data from As You Sow for the Clean 200. We integrated new 2021 data from As You Sow for the Clean 200, a ranking of the top 200 companies leading on developing clean energy solutions and using clean energy to power their operations, ranked by amount of "clean" revenue.
Updated data from Human Rights Campaign. We integrated new 2021 data from HRC's Corporate Equality Index, a benchmarking tool on corporate policies and practices pertinent to lesbian, gay, bisexual, transgender and queer employees.
Combined similar violations metrics from Violation Tracker. We combined the Fines and violations metric (a measure of all fines received by a company in the previous 4 years) and the Legal fines and violations metric (a measure of all fines received by a company from a subset of legal-related government agencies, in the previous 4 years). We determined that the two metrics were not sufficiently different to provide improved analysis or value for our customers.
Added new company self-reported data. We added several new metrics based on company self-reported data (i.e., published publicly in sustainability reports, on their websites, or elsewhere). We integrated the following new metrics into all ratings of companies, funds (based on fund holdings), and portfolios (based on portfolio holdings):
- Percentage of employees covered by collective bargaining: a metric assessing the percentage of employees covered by collective bargaining agreements. We use this metric in a number of ratings related to treatment of labor
- Percent of energy from renewable sources: a metric assessing the percent of total energy a company uses that comes from renewable energy sources. Calculated as total energy used that comes from renewable sources divided by total energy used. We use this metric in ratings related to clean energy and reduced carbon emissions
- Percentage of water recycled or reused: a metric assessing the percentage of water used by the company that was recycled or reused. Calculated as total water withdrawals that were recycled or reused water divided by total water withdrawals. We use this metric in ratings related to clean water and sustainable use of water
- Water withdrawal compared to peers: a metric assessing the total amount of water withdrawals made by the company, compared to peers. Includes but is not limited to surface, ground, saltwater, and municipal. Measured in cubic meters. We use this metric in ratings related to clean water and sustainable use of water
- Water withdrawal: a metric assessing the total amount of water withdrawals made by the company. Includes but is not limited to surface, ground, saltwater, and municipal. Measured in cubic meters. We use this metric in ratings related to clean water and sustainable use of water
- Water used: a metric assessing the total amount of water used to support a company's operational processes, in cubic meters. Includes water withdraws for process water and cooling water and all water retained by company facilities through recycling. We use this metric in ratings related to clean water and sustainable use of water
- Water used compared to peers: a metric assessing the total amount of water used to support a company's operational processes (in cubic meters), compared to peers. Includes water withdraws for process water and cooling water and all water retained by company facilities through recycling. We use this metric in ratings related to clean water and sustainable use of water
- Waste generated, compared to peers: a metric assessing the total waste generated by the company in most recent year with available data, compared to peers. Waste generated includes both hazardous and non-hazardous and is measured in metric tons. We use this metric in ratings related to waste and sustainable use of resources
- Waste generated: a metric assessing the total waste generated by the company in most recent year with available data. Waste generated includes both hazardous and non-hazardous and is measured in metric tons. We use this metric in ratings related to waste and sustainable use of resources
- Percentage of hazardous waste recycled: a metric assessing the percentage of hazardous waste recycled by the company. Calculated as the total amount of hazardous waste recycled divided by the total amount of hazardous waste generated by the company. We use this metric in ratings related to waste and sustainable use of resources
Added new third-party metrics. We added several new metrics from independent third parties, including:
- Inclusion in Dow Jones Sustainability World Index: assesses whether a company is included in the Dow Jones Sustainability World Index, a list of top companies around the world ranked by economic, environmental and social criteria. S&P Dow Jones Indices and SAM create the list together and select the most sustainable companies from across 61 industries
- Inclusion in Dow Jones Sustainability North America Index: assesses whether a company is included in the Dow Jones Sustainability North America Index, a list of top companies in North America ranked by economic, environmental and social criteria. S&P Dow Jones Indices and SAM create the list together and select the most sustainable companies from across 61 industries. Only applies to companies with headquarters in North America
- Tropical deforestation ranking: a ranking of the most influential companies and financial institutions in forest risk commodity supply chains, reflecting how well they avoid contributing to tropical deforestation. Metric created by Forest500
You can see the breakdown of data included in any company rating on the company's profile, as described above in the "Greater Data Transparency" section.
Please reach out to the Ethos team at support@ethos.so with any questions or suggestions.
About Ethos
Ethos is a first-of-its-kind FinTech platform for investors and consumers to align their spending with the causes they care about, including racial justice, workplace safety, climate change, LGBTQ equality, and more.
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