Covalence offers Environment, Social, Governance (ESG) ratings to finance professionals, helping them implement responsible investment strategies such as ESG integration, thematic, best-in-class, norms-based screening, or exclusions.
We monitor corporate disclosure and reputation using artificial intelligence, human analysis, and ESG data provided by third-parties.
Covalence also offers reputation research to corporates, universities and non-profit organisations relying on its EthicalQuote system.
Covalence SA is a limited company based in Geneva, Switzerland, founded in 2001. We are signatory of the Principles for Responsible Investment (PRI), an institutional partner of Sustainable Finance Geneva (SFG), a founding member of Swiss Sustainable Finance, and a member of the Chamber of Social and Solidarity Economy in Geneva APRÈS-GE.
We are proud to be featured in the book 10 finance innovations – Geneva, the sustainable finance laboratory published by Sustainable Finance Geneva in 2014. “Sustainable Finance Geneva wished to showcase the work of financial pioneers and present ten emblematic innovations that demonstrate our region’s creativity in this field.“
“Geneva-based company Covalence developed in 2001 a methodology for analyzing companies that includes both data released by the company and information published about the company by other sources – such as the media, NGOs, government bodies, etc. This innovation was made possible by the widespread use of the Internet. Covalence considered that it was essential to diversify sources of information to increase the credibility of ratings. As such, the critical perspective of NGOs, trade unions and the media provide a useful addition to those of the companies under scrutiny.” More…
We also help investors integrate ESG criteria into their investment decisions and products. For example, Covalence collaborates with Vandaalen & Cie for the benefit of an AMC (Actively Managed Certificate) is Swiss equities.
The ESG rating system managed by Covalence is particularly 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 in view of creating a Peacebuilding Investment Fund.
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 Ethics published an article exploring Covalence data: Changes in the Covalence Ethical Quote, Financial Performance and Financial Reporting Quality. “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…
Covalence has received the following recognitions and awards: