New York – Today’s topic: consolidation in the ESG (Environment, Social & Governance) research space…. again.
The ESG space feels a bit like a Latin Telenovela (Daytime Soap Opera) – with fleeting romances, breakups and of course nuptials. But while there are lots of fan sites and TV shows to help you keep track of the Soaps, Integrity is alone in helping you keep track of who’s doing what to whom in the ESG space. See the bottom of this blog for a table showing the most notable recent unions.
Double Wedding in Europe
After a flurry of activity stateside, the activity has moved to Europe where in many regards ESG is taken more seriously as part of the investment mosaic.
On may 31st, 2010 Centre Info and INrate, two Swiss sustainability rating agencies, announced the consolidation of their love (merger). The resulting company will keep the INrate name, and will offer bespoke solutions to clients. Existing offices in Zurich and Fribourg will remain in operation. The new firm offers 20 years of know-how in sustainability research for financial institutions, with focus on Swiss, French, and German clients.
On May 20th, 2010 Analistas Internacionales en Sostenibilidad (AIS), a Spanish sustainability ratings agency, announced its merger with Sustainalytics, a Netherlands-based provider of ESG research. AIS will now be called Sustainalytics España, and will continue to focus on sustainability analysis of companies traded in international capital markets.
The Love Triangle is Complete
Readers may remember that after KLD and Jantzi’s impending nuptials were broken off when Riskmetrics enticed KLD away, Sustainalytics bagged Jantzi on the rebound – forming Jantzi- Sustainalytics in North America (Sustainalytics in Europe). Jantzi-Sustainalytics is now joined by AIS in Spain securing a harmonious and multi-cultural love triangle.
As with all good telenovelas, we expect the story to run and run as firms continue to strive to offer an integrated global approach to ESG. Integrity Research will keep you up to date on these intertwining relationships.
Consolidation Table
| Firm | Action | Resulting Firm | Date |
| INrate | Merges with Centre Info | INrate | May 2010 |
| Sustainalytics | Acquired Analistas Internacionales en Sostenibilidad | Sustainalytics Espana | May 2010 |
| MSCI | Acquired RiskMetrics | RiskMetrics Group | Feb 2010 |
| Thomson Reuters | Acquired Asset 4 AG | Thomson Reuters Asset 4 | Dec 2009 |
| Bloomberg | Acquired New Energy Finance | Bloomberg/ new Energy Finance | Dec 2009 |
| RiskMetrics | Acquired KLD Research & Analytics | RiskMetrics Group | Oct 2009 |
| Sustainalytics | Merges with Jantzi Research | Sustainalytics – Jantzi | Sep 2009 |
| Bloomberg | Launched its ESG product | Bloomberg ESG | Aug 2009 |
| Morningstar Inc. | Acquired Global Reports LLC | Morningstar Inc. | Apr 2009 |
| RiskMetrics | Acquired Innovest | Riskmetrics | Feb 2009 |
| Glass Lewis | Acquired Washington Analysis | Glass Lewis | Nov 2008 |
| RiskMetrics | Acquired ISS and CFRA | RiskMetrics Group | 2006 and 2007 |