NEW YORK--(BUSINESS WIRE)--GMI, which was created through the merger of three independent research leaders, announced today the launch of “GMI Analyst,” a fully integrated research platform that provides investors and corporate stakeholders with a comprehensive evaluation of public company Environmental, Social and Governance (ESG) risks.
The analytical foundation for GMI Analyst comes from the integration of the content and tools from each of the merged businesses: The Corporate Library, renowned for its deep, proprietary research on critical governance issues; GovernanceMetrics International, noted for its global coverage along with a comprehensive set of ESG metrics and analysis; and Audit Integrity, with expertise in providing forensic accounting analysis and risk models.
The launch of GMI Analyst is a major milestone after the three firms merged in December 2010, positioning GMI as the leading independent provider of global corporate governance and ESG ratings and research. GMI Analyst brings together GMI’s extensive global coverage of over 20,000 companies, encompassing all developed markets and many emerging markets. As the leading independent ESG research firm, with an unparalleled set of content and capabilities, GMI has brought together a broad set of data, metrics and ratings on a single integrated platform. Beyond ESG metrics, GMI Analyst ratings also incorporate accounting transparency measurement to support the goal of identifying companies at risk.
“The need for ESG research continues to grow, as investors and other corporate stakeholders recognize the impact that governance, environmental and social factors can have on company performance and risks,” said Jack Zwingli, CEO of GMI, “We have a strong track record of linking ESG metrics and ratings to risks and returns, and GMI Analyst will provide actionable research to support informed decision making.”
Based on its deep experience in ESG research, GMI is providing two distinct company ratings on GMI Analyst. In the 20 years experience of GMI and its predecessor firms, GMI has found the factors contributing to its ratings to be of material importance to value. The ’ESG Rating’ is based on the body of ESG standards that has taken hold in the market, and is a measure of long-term sustainable performance and compliance with those standards. The ‘Risk Rating’ is based on GMI’s extensive history of building effective risk models, and uses ESG metrics to identify companies at short term (1-2 years) risk of negative events, such as litigation and regulatory actions, that can impact company value.
“Companies have long been valued on fundamental financial analysis – whatever can fit into a spreadsheet,” Zwingli said, “There is, however, a growing body of acceptance among asset owners, asset managers, corporate board members and other stakeholders that ESG factors are equally relevant in determining the value of a company. You need look no further than the latest governance disasters to recognize the need to incorporate ESG research into investments, disclosure and risk management.”
GMI Analyst ratings are built on an extensive model that examines, among other things:
- Governance – GMI is the leading source of governance research, covering key areas such as board accountability and effectiveness, executive pay, firm ownership and control and takeover defenses.
- Environmental – GMI environmental research, provided in part through a relationship with Trucost, focuses on the environmental impacts of specific companies as well as how companies manage and report on such impacts. Key metrics of critical importance include issues such as climate change risks and disclosure; environmental reporting; board-level governance; supply chain risk and monitoring; and environmental management systems.
- Social – GMI provides key social metrics most relevant to identify how companies manage and report on their social impacts and target areas of risk. Key metrics of critical importance include vendor standards, employee relations, bribery and corruption, diversity and political contributions.
- Accounting – Accounting transparency is a critical part of governance risk, and GMI offers a comprehensive set of forensic accounting metrics focusing on how companies recognize revenues and expenses and how they value assets and liabilities.
GMI Analyst includes extensive related content such as market data, insider trading and related party transactions, as well as advanced tools such as sophisticated search and portfolio analysis.
“As a signatory to the United Nations-backed Principles for Responsible Investment Initiative (PRI), GMI supports the incorporation of ESG research into the investment process and further corporate disclosure of ESG content,” said Richard A. Bennett, Executive Chairman of GMI. The PRI are based on the premise that ESG issues can affect investment performance and that the appropriate consideration of these issues is part of delivering superior risk-adjusted returns and is therefore firmly within the bounds of investors’ fiduciary duties. Over 900 signatories representing USD $22 trillion AUM have committed to these investment principles.
GMI is the leading independent provider of global corporate governance and ESG ratings and research. GMI ratings, covering more than 20,000 companies worldwide, are built on extensive research and modeling that incorporate a broad spectrum of Environmental, Social and Governance (ESG) metrics. GMI ratings also encompass accounting transparency issues, to support the goal of identifying companies at risk. GMI ratings are widely used by leading institutional investors, banks, insurers, auditors, regulators and corporations seeking to incorporate corporate governance and ESG factors into risk assessment and decision making. GMI’s clients have found a valuable link between GMI ratings and major negative events, such as regulatory actions, shareholder litigation, material financial restatements and financial distress – all of which impact investment returns and company performance. GMI is a signatory to the United Nations-backed Principles for Responsible Investment Initiative (PRI), a network committed to incorporating ESG research into the investment process. GMI is the combined entity of GovernanceMetrics International, The Corporate Library and Audit Integrity, which all merged in December 2010. For more information please visit www.gmiratings.com.