Thomas Schumann Capital® to use Refinitiv ESG water metrics exclusively to create the first of its kind TSC Water Risk Index® facilitating enhanced water security and responsible investing.
Thomas Schumann Capital® (TSC), leading solutions provider for water security and responsible investing has entered into an agreement to utilize Refinitiv ESG water metrics exclusively for the TSC Water Risk Index®, the world’s first index family using a proprietary methodology to mitigate water risk in portfolios.
Climate change and the rising demand for fresh water puts greater pressure on existing water supplies and introduces additional uncertainty for companies that are dependent on fresh water. On average, 41% of assets owned by companies in the MSCI ACWI Index are in high water stress regions. Its scarcity poses a variety of risks to businesses and investors such as market, reputational, regulatory and litigation and operational risks.
TSC has identified two key strategies through which forward-thinking investors can achieve equity market returns while contributing to global water sustainability: investing in companies that demonstrate exceptional water stewardship and indexing water risk in equities. Used to aid in the build of the TSC Water Risk Index®, Refinitiv ESG data is designed to enable investors to make sound, sustainable investment decisions. Their ESG data covers 80% of global market cap and spans over 450 metrics, including 10 water metrics: water recycled, policy on water efficiency, targets for water efficiency, SDG 6 on clean water, water discharged, water pollutant emissions, fresh water totals and water withdrawals.
“TSC is honoured to collaborate with the world’s leading ESG and data solutions provider to advance responsible investing and UN SDG 6 “Water Security” in global capital markets,” says, Schumann.
Leon Saunders Calvert, Head of ESG, Lipper and I&A Insights, comments, “Refinitiv has an important role to play in enabling the mainstreaming of ESG data into finance practices to enable more robust risk management, opportunity identification and quantification of impact as capital is optimized for long term sustainable outcomes. The use of key Refinitiv data points in the TSC Water Risk Index®, is a great way to combine complimentary assets from both firms to productize new capabilities supporting the financial community to this end.”
By exclusively using ESG water metrics from Refinitiv, one of the world’s largest providers of financial markets data and infrastructure TSC is transforming corporate water management and stewardship into quantifiable financial metrics to minimize water risk in both equity and fixed income. The result provides the financial industry with a better understanding of climate and water risks and the insight to develop innovative financial instruments that meet global demand for responsible investment.
Refinitiv has been serving the financial industry with ESG data and solutions for over 18 years and offers one of the richest ESG databases in the industry – a fully transparent resource that is trusted by investors and corporates to drive positive impact and provide comprehensive analysis. As members of the UN Global Compact, Refinitiv is part of a community of 9,000+ businesses across 135 countries that are committed to operating with responsible business practices at its core. For more information about Refinitiv ESG data, visit https://www.refinitiv.com/en/sustainable-finance/esg-investing
Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community – driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime. For more information visit: www.refinitiv.com
About Thomas Schumann Capital®
Thomas Schumann Capital® (TSC) is the world's leading solution provider for investable indices and products that track global water risk. TSC is the sponsor of the world’s first benchmark index series tracking water risk in securities and across asset classes due to their exposure to water and climatic extremes. For more information visit: www.thomasschumanncapital.com