Covalence provides investors and asset managers with ESG ratings, greenwashing risk indicators, SDG scores, ESG news data, and investment solutions. We’re also involved in executive education for finance professionals.
They are based on data publicly reported by companies (disclosure) and on news sentiment reflecting the perceptions of stakeholders such as the media and NGOs (reputation), both positive (endorsements) and negative (controversies).
Our ESG ratings can be used for risk management, factor investing, positive and negative screening, ESG integration, and thematic investments.
Covalence’s ESG rating system has been enriched with a greenwashing risk indicator highlighting discrepancies between companies’ promises and action regarding sustainability. Like a sincerity detector, this new indicator gives a more realistic picture of their ESG credentials while enabling to assess the credibility of sustainability commitments, analyze ESG risks, identify future leaders and spot companies showing most progress.
The greenwashing risk indicator is obtained by comparing forward-looking and backward-looking news sentiment. Forward-looking news data covers companies’ sustainability commitments and aspirational statements, while backward-looking data reflects how stakeholders perceive their achievements and past actions.
Use cases: portfolio risk analysis and reporting, institutional reputation management, portfolio management, ESG integration, shareholder engagement.
Covalence filters its ESG data and recodes it with the Sustainable Development Goals to show companies’ exposure to the SDGs and document their positive impacts, providing insightful material for impact analysis and supporting thematic investment strategies.
The recoding of ESG data with the SDGs takes place in both dimensions of Covalence’s methodology, disclosure and reputation.
For instance, the European Union has used our SDG scores to produce the 2021 EU Industrial R&D Investment Scoreboard.
Since 2001 we have been monitoring ESG news on a daily basis, both positive news (illustrating companies’ sustainability credentials) and negative news (reflecting controversies and the issues they are facing).
This service is useful for identifying ESG-related opportunities and for managing legal, economic and reputational risks. Our dynamic, granular, news-based data informs on ESG practices (GRI-inspired criteria), impact (SDGs, SFDR) and materiality (SASB), providing signals relevant to quant trading and equity factor investing.
The news feed is available on our interactive data visualization platform. Data feeds can also be delivered via FTP, email or API in various formats (.xlsx, csv, json). Finally, users can receive email alerts to be informed of breaking news and recent developments.
Covalence SA, a specialist in ESG ratings and research, and Sussland & Co SA, a Geneva-based wealth manager, joined their forces to offer the ZKB Tracker Certificate Dynamic on Sustainable Swiss Small and Mid-Caps in partnership with Zürcher Kantonalbank.
The product has as objective to provide investors with a highly diversified portfolio of shares of Swiss small and mid-cap companies that have demonstrated through their acts their commitment to the ESG mindset as well as the ability to generate a positive impact on communities.
The investment universe includes companies with market capitalisation between CHF 500 million et 20 billion, and registering an above average ESG rating, which represents approx. 80 companies.
Co-managed by the PeaceNexus Foundation and Covalence, the Peacebuilding Business Index ranks the 300 economically most impactful companies in fragile countries according to their contribution to peace and stability.
This index is used to define the investment universe of the Cadmos Peace Investment Fund, a thematic fund selecting global companies operating in fragile countries that demonstrate a high degree of conflict-sensitivity and sustainability in their operations, factors which we believe indicate their resilience and ability to innovate in complex settings.
This global equity fund with a portfolio of 30-40 listed, multinational companies is the first investment fund focusing on peace (SDG 16 Peace, Justice and Strong Institutions).
This innovation is a joint venture of Geneva-based PeaceNexus Foundation (founded by Anne Gloor with support from entrepreneur and philanthropist Hansjörg Wyss), Covalence SA (ESG ratings), and wealth manager de Pury, Pictet, Turrettini SA (PPT). They are supported by NexusVesting and BHP – Brugger & Partners. This long term partnership has developed an assessment methodology and an engagement strategy to understand and enhance the peacebuilding potential of companies.
The Peacebuilding Business Index has also triggered interest from organisations such as Responsible Investor, the UN Global Compact, World Economic Forum, Peace News Network, Strategic Foresight Group, Oxfam Novib and SOMO, The Graduate Institute, and SwissFoundations.
Peacebuilding Business Index
Cadmos Peace Investment Fund
Co-managed by Covalence’s Antoine Mach, the CAS Sustainable Finance offered by Haute école de gestion de Genève received the prize for Best Pedagogical Innovation at the FIR-PRI Finance & Sustainability Awards 2019.
Designed by professionals for professionals, this programme is mainly organized through online teaching in English. Seasoned sustainable finance experts from the financial, banking, international organisations and academic domains have contributed to this CAS. A final week in Geneva is devoted to networking, live presentations, discussions and visits at expert organisations, enabling participants to dive into the rich local sustainability ecosystem.
Covalence and Sussland & Co SA joined their forces to offer the ZKB Tracker Certificate Dynamic on Sustainable Swiss Small and Mid-Caps in partnership with Zürcher Kantonalbank. The product has as objective to provide investors with a highly diversified portfolio of companies that demonstrate their commitment to the ESG mindset.
Co-managed by the PeaceNexus Foundation and Covalence, the Peacebuilding Business Index ranks the 300 economically most impactful companies in fragile States according to their contribution to peace and stability. This index is used to define the investment universe of the Cadmos Peace Investment Fund, a thematic fund managed by de Pury, Pictet, Turrettini SA.
Arabesque S-Ray is a global data provider that focuses on advisory and data solutions by combining big data and environmental, social and governance (ESG) metrics to assess the performance and sustainability of companies worldwide. Covalence provides Arabesque with a daily feed of ESG news data that is integrated into their S-Ray solution.
Covalence is proud to be part of Team Quantagon winning the Eagle Alpha ESG Data Hackathon in May 2021. This event explored how alternative data can fill gaps in standard ESG measures and provide deeper insights into ESG criteria. Covalence provided the overarching theme allowing a comparative analysis of Toyota and ExxonMobil.