Stockholm (NordSIP) – Nasdaq Nordic launched the Nasdaq ESG Data Portal in Copenhagen Monday (December 17), a tool designed to show how listed companies in the Nordic region and the Baltics rank comparatively on key sustainability metrics and allowing investors to screen them based on their ESG credentials.
The initiative follows the launch of Nasdaq’s ESG Reporting Guide in 2017, which encourages companies in the Nordic and Baltic capitals to volunteer information.
160 companies with a combined market cap of €213 billion currently submit ESG information voluntarily that will be ranked on the portal, and though it will not be a formal requirement for listed companies, it goes some way to addressing the lack of standardised information that, according to Suzanne Dahl, vice president of Nasdaq’s Global Information Services division, remains a critical issue for many investors.
“A global megatrend is creating investor demand for transparent, comparable and actionable ESG data,” Dahl said in a press release. “As a central hub in the market, we want to bridge that gap through our innovative new product, creating a standardised ESG reporting.”
The listed firms will ‘seamlessly’ release their data directly into the portal for compilation by Nasdaq into standardized ESG metrics that can then be integrated by each firm back into their portfolio and processes. The portal captures a wide range of actionable environmental, social and corporate governance data, providing a cost-effective manner for firms to showcase their ESG efforts, according to a description of the product.
Investors will thereby be able to integrate the data into their portfolio and quantitative analysis, equity research, and screening processes. Risk assessments of individual companies can be created and compared with peer firms in the same sector and market size category. The ESG screening of potential investments itself considers operational efficiency, risk oversight and transparency.
“The Nasdaq Nordic exchanges are committed to the promotion of sustainable markets, and in our view the best way to promote ESG is to integrate it into the products and services that we offer,” said Lauri Rosendahl, president of Nasdaq Nordic and senior vice president of Global Trading & Market Services. “As a market operator, Nasdaq can support the future direction of ESG in the market, and the Nasdaq ESG Data Portal is an important step to facilitate a movement towards more sustainable investments.”
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