UK company Infospectrum, an independent global provider of counterparty risk appraisal reports and ratings, due diligence research and KYC intelligence in the markets including shipping, energy and commodities, has launched the Infospectrum ESG Assessment Report (ESG-A) service.
This report and rating system uses Infospectrum’s Multiple Factor Verification (MFV) process to provide clarity to ESG strategy, accountability, performance, and transparency within a consistent framework. The ESG-A brings Infospectrum’s analytical approach to the ESG space. The limitations of unverified ESG-related self-declarations are compounded by the sector’s use of low disclosure domiciles and unique operational characteristics including differences in asset ownership and control, entrenched contractual frameworks, extended counterparty chains, and varying global regulatory regimes. Leveraging Infospectrum’s institutional knowledge and sectoral expertise, while acknowledging that a lack of traceable information can still provide material insight, the ESG-A provides comprehensive actionable intelligence despite the volatility inherent in asset-level disclosures (such as emissions data).
Clare-Marie Dobing, Head of ESG Desk, Infospectrum, said: “ESG is a fast and dynamic space where a great deal of variability persists in terms of ESG disclosures, strategies and wherewithal. Through the Infospectrum ESG-A, we aim to provide all interested parties with a robust assessment of ESG performance within a consistent framework. Users are able to benchmark their performance, or that of industry peers and other counterparties, based on insights into differentiated approaches, best practices and technological exposures. Infospectrum’s experience in navigating opaque business practices, understanding complex operational modalities and cultural and regional norms, means we are well placed to provide this intelligence, with the ESG-A already receiving considerable interest from our global clients and network.”
The ESG-A traces a company’s chosen ESG strategy, identifies governance structures and key executives responsible for designing ESG-commitments and overseeing execution. Implementation of strategies including adoption of ESG-technologies and alternative fuels, and participation in carbon markets are highlighted alongside key alliances, memberships and ESG investments. Where applicable, a company’s approach to ESG-related market opportunities such as renewable energy is also considered. The report concludes with an assessment and rating.
Ruta Samant, Infospectrum Head of Strategy and Development, Ratings, said: “Infospectrum’s ESG-A rating methodology recognises the unique organisational, operational, contractual, normative and technological realities that are practically faced by companies engaged in the sectors we specialise in. It seeks to address some of the challenges our clients have faced while applying ESG-diligence considerations alongside their existing counterparty evaluation processes by providing a consistent, yet dynamic, assessment of a company’s fundamental ESG approach against a rapidly evolving and globally varying context. The ESG-A rating leverages Infospectrum’s industry-recognised, comprehensive counterparty rating methodology, the core of which combines data analytics with human intelligence within our proprietary Multiple Factor Verification (MFV) process, which has been optimised over our 20-year track record”.
