A new sustainability rating system that includes an ‘economic perspective’ metric, has been created by Germany’s DZ Bank.
The rating brings together data on 150 CSR issues (provided by Sustainalytics) with more mainstream financial information, creating what DZ Bank is billing as a ‘holistic view’ that will allow investors to evaluate sustainability and economic success.
Social and environmental data will be weighted and linked to ‘economic sustainability’, and companies will receive a final assignation of ‘sustainable’ or ‘unsustainable’ that also takes account of exclusion criteria for specific sectors.
DZ Bank’s research arm will analyse a universe of 334 stocks daily, including all businesses on Germany’s main Dax exchange and a number of small and medium-sized businesses.
Stefan Bielmeier, head of DZ Bank Research, said: ‘The proportion of sustainable investments in the portfolios of institutional and private investors is increasing continuously.’
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