Two Sigma Investments, LP
Climate Impact & Sustainability Data (2010-2020)
Reporting Period: 2010-2020
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Climate Goals & Targets
Environmental Challenges
- Inconsistent definitions among ESG data providers present challenges for investors seeking to measure their exposures and benchmark performance.
- Lack of standardization in ESG definitions.
- Differences in how providers construct their ESG portfolios (weighting of E, S, and G components).
Mitigation Strategies
- Develop one's own ESG values and deeply diligence the investment manager's and ESG data provider's methodologies to ensure alignment.
- Analyze E, S, and G separately instead of viewing them in aggregate.