Enhanced index algorithm helps deploy impactful passive investment strategies by leveraging risk-focused ESG data
RepRisk, a leading ESG data science firm combining machine learning and human intelligence to identify ESG risks, has partnered with B3, the leading exchange in South America, to update the B3 Corporate Sustainability Index (ISE B3). RepRisk ESG risk data on 1,000 Brazilian companies is now integrated into the selection and scoring algorithm of ISE B3, and will be used in portfolio screening and monitoring processes by B3. The enhanced ISE B3 index algorithm leverages ESG risk criteria for deploying more impactful passive investment strategies and drives sustainable capital allocation in the South American market.
“RepRisk is excited to announce its partnership with B3,” said Alexandra Mihailescu Cichon, Executive Vice President of Sales and Marketing at RepRisk. “Using daily-updated, risk-focused ESG data for the assessment and selection of constituents allows the index, and the investors who utilize and track the index in their investment strategies, to quickly react to material ESG risks that may translate into financial, reputational, or compliance risks. Growth in passive investing and ESG investing are two notable trends over the past few years – and the partnership with B3 and RepRisk underscores those trends and serves as a milestone for the South American market.”
“The ISE B3 index is not only an important indicator for investors who are hungry for sustainable assets, but it also plays a role in encouraging companies to advance their ESG practices in Brazil,” said Ana Buchaim, the managing director of People, Marketing, Communication and Sustainability at B3. According to Ms. Buchaim, the index revision, the most important one to be implemented in the 16 years of its existence, reinforces the process transparency and allows for the most advanced companies in the ESG agenda to stand out in the ISE B3 index portfolio. “It is part of our commitment to the evolution of the sustainability agenda to deliver an indicator that matches the sophistication that the market has been gaining in this area in Brazil,” added Ms. Buchaim.
RepRisk offers daily-updated quantitative risk analytics, metrics, and qualitative research for more than 175,000 public and private companies across every sector and market around the world. Its unique research approach excludes company self-disclosures and analyzes information from public media and stakeholder sources to assess whether companies ‘walk their talk’ when it comes to ESG. RepRisk’s research coverage includes 23 languages, including Portuguese, thereby covering more than 95% of the world’s GDP.
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