Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced plans to launch a new data service that is designed to help investors better assess the environmental, social and governance (ESG) risks and opportunities in corporations.
Increasingly, investors across the world are including ESG risk into their investment decisions, reflecting a view that companies that maintain good metrics in this area may generate stronger returns, deliver lower risk, and adhere to sound management principles. A report by BofA Global Research last September noted there could be over $20 trillion in asset growth in ESG funds over the next two decades, equivalent to the size of the S&P 500 today.
To meet this trend with actionable data, ICE Data Services is adding ESG terms and conditions data to its existing reference data offering for U.S. and international listed corporations. ICE Data Services’ customers will be able to subscribe to receive primary ESG data points, such as greenhouse gas (GHG) emissions reported, board diversity metrics, and nearly 500 other key metrics of ESG-related data. The dataset will be flexible, growing as ESG disclosure evolves.
BofA Global Research will serve as ICE’s development partner for this new service and will leverage the offering to enhance its global equity and credit analysis, including ESG-related metrics, incorporated into the fundamental research reports it provides to its clients.
“Our investing clients are seeking consistency and transparency in ESG reporting,” said Candace Browning, head of BoA Global Research. “ICE Data Services already has a robust reference data offering covering millions of securities, and we look forward to working with them as they build out this additional functionality.”
“The ESG landscape is evolving rapidly, and investors are increasingly looking for comparable, decision-useful data,” said Lynn Martin, President of ICE Data Services. “By supplementing our existing reference data services with quantitative ESG data points drawn from publicly available information, our goal is to increase transparency for these metrics, enabling customers to better understand the risks and opportunities that exist in the market. We are proud to partner with BofA Global Research, one of the world’s thought leaders in this area of financial analysis.”
We anticipate that customers will be able to subscribe to the new ESG reference data offering in the second half of 2020.