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Abstract
Bloomberg ESG data covers 120 environmental, social, and governance indicators including: carbon emissions, climate change effect, pollution, waste disposal, renewable energy, resource depletion, supply chain, political contributions, discrimination, diversity, community relations, human rights, cumulative voting, executive compensation, shareholders' rights, takeover defense, staggered boards, and independent directors. Corporate governance, risk, and crisis management, codes of business conduct, customer relationship management, policy influence, brand management, tax strategy, information security and cybersecurity, privacy protection, environmental reporting, environmental policy and management systems, and operational eco-efficiency. * DJSI North America: This index represents the top 20 percent of the largest 600 North American companies in the S&P Global BMI. Specific factors include:11 * For board structure: board and board committee composition, board practices, board policies, related party transactions and board controversies; * For compensation/remuneration: pay for performance, non-performance based pay, use of equity, equity risk mitigation, nonexecutive pay, communications and disclosure, termination and controversies); * For shareholder rights: one-share one-vote, takeover defenses and meeting and voting related issues and * For audit and risk oversight (external auditor and audit and accounting controversies). Reputation and Usage * In 2016, BlackRock announced the expansion of sustainable ETFs (exchange-traded funds), introducing iShares MSCI EAFE ESG (Europe, Australia, Asia and the Far East ESG),15 Select ETF and MSCI EM ESG (Emerging Markets ESG) Select ETF, using ESG ratings and data provided by MSCI. * In 2014 State Street Global Advisors announced the SPDR MSCI ACWI (All Country World Index) Low Carbon Target ETF,16 which uses MSCI ESG data on carbon emissions and reserves.