Asset4 ESG dataset & scores

The corporate social responsibility dataset Asset4 ESG is available through Datastream / Eikon products. The dataset contains an overall score for companies, as well as individual scores for the four pillars on which it is based. In a nutshell it involved:

  • Overall Equal weighted rating score: A4IR
  • Corporate Governance score: CGVSCORE
  • Economic score: ECNSCORE
  • Environmental score: ENVSCORE
  • Social score: SOCSCORE

These individual 4 scores were based on a lot of components. From 2014 on Thomson stopped collecting data on some of the components and few more data measures from 2017 onwards. The related datatypes got the indicator inactive (between brackets). The old/stale data (as Thomson puts it) has, however, not been removed, or not yet.

A new methodlogy was created and these are no longer indicated as being a specific part of the Asset4 dataset but are Thomson series. The new overall scores are now:

  • The ESG score (TRESGS): is an overall company score based on the self-reported information in the environmental, social and corporate governance pillars.
  • The ESG controversies score (TRESGCCS): is calculated based on 23 ESG controversy topics. During the year, if a scandal occurs, the company involved is penalized and this affects their overall ESG Combined Score and grading
  • The ESG Combined score (TRESGCS): Thomson Reuters ESG Combined Score is an overall company score based on the reported information in the environmental, social and corporate governance pillars (ESG Score) with an ESG Controversies overlay. When companies were involved in ESG controversies, the ESG Combined Score is calculated as the weighted average of the ESG scores and ESG Controversies score per fiscal period, with recent controversies reflected in the latest complete period. When companies were not involved in ESG controversies, the ESG Combined Score is equal to the ESG Score.

In the extranet website of Datastream / Eikon a document is available explaining the new methodology in more detail. There is also an Excel document with details on data types as well as how they are calculated based on other ESG data types.
By filtering the list/glossary using the pillar column on ESG score you can also find new 10 main overall scores for companies for specific items which include: Community Score (TRESGSOCOS), Resource Use Score (TRESGENRRS), and Workforce Score (TRESGSOWOS).

In the recent past the ESG items have increasingly become important and are used by many investors as well as researchers & students. From the latter perspective I hope the inactive items (even though they are discontinued) will not be deleted from the original dataset. I hope this, because of reproducability of earlier research. The University of Manchester blog offers some additional information, including the 2015 list of Asset4 datatypes.

N.B.: The number of companies that have been covered through Asset4 has grown from about 1500 in 2002 to 7000+ these days (world wide). If you wish to know which companies are covered, you can use the Find series button to search on ASSET4 and you will get lists by country etc. This includes the Full universe list with the code: LAST4ESG

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