Thomson Reuters launches new environmental investment tool

Thomson Reuters launches new environmental investment tool

Thomson Reuters has this week officially launched a new set of indices based on European companies' Environmental, Social and Corporate Governance practices.

The company says the four Thomson Reuters CRI Europe Indices offer a comprehensive, objective, and transparent benchmark for global ESG performance.

They form part of a connected suite of ESG-related products and services, including bringing together the databases of Thomson Reuters ASSET4, Thomson Reuters Corporate Responsibility Ratings and the Thomson Reuters CRI Indices.

Live calculation of the indices began on July 28, with historical data ranging from December 31, 2007.

Stephan Flagel, head of Indices at Thomson Reuters, said the indices would allow investors to access data about a growing market sector.

"As responsible ESG investing continues to gain traction around the world, Thomson Reuters remains committed to delivering the most comprehensive and transparent family of indices available today in order to give investors the benchmarks they need to make informed decisions," he said. "The new Thomson Reuters CRI Europe Indices, in combination with our wider ESG-related services, offer a very powerful proposition for all ESG-conscious individuals and institutions."

A growing body of research has suggested that listed firms with a strong ESG track record tend to outperform their peers over the long term, as they tend to manage environmental and reputational risks and can be quicker to identify new opportunities. Consequently, Thomson Reuters, FTSE, and other financial information bodies have in recent years sought to expand the number of ESG and clean-tech focused indices they offer, providing investors with an opportunity to assess how strong ESG companies are performing against their peers.

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