ESG Ratings

Our ESG ratings can serve several sustainable investment strategies: ESG integration, thematic, best-in-class, norms-based screening, or exclusions. They are also suited for academic research.

For example, Covalence collaborates with Vandaalen & Cie for the benefit of an AMC (Actively Managed Certificate) is Swiss equities. 

“Comment investir dans des valeurs suisses respectant les préceptes du développement durable tout en gagnant de l’argent? La société genevoise Vandaalen & Cie s’est associée à Covalence pour proposer un produit très réactif. Arnaud Chamorel, à la tête de Vandaalen & Cie, a créé un AMC (Actively Managed Certificate).” Suite de l’article paru dans Bilan

The ESG rating system managed by Covalence is well suited for developing thematic sustainable investment products due to its high degree a granularity (the ESG data can be filtered by topics, regions, countries, types of sources, etc.). For instance, we help the PeaceNexus foundation align its investments to its mission with a groundbreaking thematic investment approach:

Covalence collaborates with the PeaceNexus foundation for measuring the contribution of business to peacebuilding in fragile countries. Its objective is to set a Peacebuilding Investment Fund.  PeaceNexus is a Swiss-based foundation established in May 2009. It was founded by Anne Gloor and has been supported since its inception by the endowment granted by the entrepreneur and philanthropist Hansjörg Wyss.

Sustainable Development Goals in the Private SectorAccording to investors’ preferences Covalence’s data and ratings can be translated into Sustainable Development Goals such as health, education, gender, energy, water, etc. As an illustration, see this article published in Le Temps: Les Objectifs de développement durables sont une chance pour les entreprises suisses, and this Dukascopy TV interview.

The ESG ratings produced by Covalence are also used by academics worldwide for research on ESG performance, Corporate Social Responsibility, and the business case of sustainability.

The Journal of Business EthicsFor instance, Professor Fayez Elayan from Brock University St. Catharines (Canada) and its co-authors published an article in The Journal of Business Ethics exploring Covalence data. “We find first a significant causal relationship between stock market reactions and changes in the the Covalence Ethical Quote (CEQ). (…) We have tried to make the case that the CEQ measure/ proxy is the best measure capturing firm ethical behavior employed to date.” More…

The standard ESG ratings provided by Covalence are available in our monthly updated ESG Snapshots, one pagers showing the ranking results across sectors and within sectors, ESG ratings, rating’s history, as well as the performance in each of the 7 dimensions and the most active criteria over the last months.