BNP Paribas Securities Services has launched a new tool allowing clients to integrate environmental, social and corporate governance factors more easily into their investment decision making process.

ESG Risk Analytics provides a detailed breakdown of how well clients’ investments and benchmarks rate against an extensive range of ESG factors.

These include environmental factors, such as carbon emissions and energy usage; social factors, such as human rights and community relations; and corporate governance factors, such as board diversity and shareholder rights.

“ESG is becoming an essential part of the investment decision-making process,” said Patrick Colle, general manager of BNP Paribas Securities Services.

“However, putting an ESG-aware investment strategy into practice can prove difficult, with data gathering and analysis presenting some of the most testing challenges.

“Managing this data, analysing it and presenting it in a clear, concise and easily digestible way is the core of what the ESG Risk Analytics solution provides for clients.

“With this new solution, we aim to help institutional investors overcome obstacles and incorporate ESG into their everyday investment decisions.”

The platform evaluates up to 750 ESG data points for each company in its database.

 This data is then used to analyse clients’ portfolios, providing an overall ESG score, which can be compared to other portfolios and benchmarks.

ESG Risk Analytics also provides deeper analysis, breaking down a client’s portfolio to country, sector and individual security level.