JP Morgan has launched new research that allows investors to compare environmental, social and governance (ESG) metrics across Australian listed companies.
The ESG Snapshot is a one-page summary that provides quantitative, data-based analysis of the Australian listed companies covered by JP Morgan. The first two snapshots included BHP Biliton, Orica, Woolworths, Origin Energy and Tabcorp, among other companies.
JP Morgan Australian equity research analyst Garry Sherriff said the ESG Snapshot was a first-to-market initiative towards mainstream integration of ESG issues into investment decision making. The ESG Snapshot is a tool to augment the existing investment decision-making process.
"At the moment much of the ESG research in the marketplace is qualitative in nature. We have taken the initiative to devise the JP Morgan ESG Snapshot to provide investors with a meaningful, data-based analysis of ESG metrics on Australian listed companies," Sherriff said.
"More Australian listed companies are moving towards reporting ESG data."
JP Morgan sourced much of the Australian company ESG data from Bloomberg.
Sherriff said that was not the end of JP Morgan's efforts, but a positive step towards "mainstreaming" ESG into investment decision making. JP Morgan plans to incorporate the ESG Snapshot as a standard tool of analysis for investors into all of its Australian company research.
"Investors are demanding more ESG research and subsequently there is pressure on Australian listed companies to report ESG metrics. BHP is an example of one company that is leading the way in terms of ESG reporting," Sherriff said.
