Util is developing a new bottom line performance metric, supporting responsible investors as they seek to better quantify, measure and compare the total impact of their investments on people, planet and pocket.
The challenge the market faces is not unique: there have been many cases where market attention moves more quickly than robust data and metrics. The requirement for robust data on investor sustainability and impact can be compared to similar previous requirements for standardised CDS pricing or mandatory corporate disclosures. However, failing to meet the challenge of measuring, monitoring and acting on robust impact metrics has consequences far beyond bottom line. The investment industry has taken great steps to acknowledge the position it plays in solving some of the greatest challenges of our time, however the supporting data and metrics industry has lagged behind. The challenge facing Util is to provide the market with the right data to help investors understand, measure, compare and act upon the impact that they have on people, planet, and our pockets.
Util is developing the first automated, standardized and quantified analysis of holistic company and investor performance. Using advanced machine learning, Util can quantify the ‘total impact’ of companies and investors in a standarised, comparable manner. This new bottom-line metric provides responsible investors with a powerful tool to better understand their negative impact exposures, maximize their positive impact, compare performance against benchmarks and peers, build targeted, impact-thematic investment products, and report impact in a comparable and transparent manner.
We acknowledge that all investors strive to be responsible in their investment practices. Investors, acting as global citizens in a world faced with unprecedented challenges, must be encouraged to view investment and engagement decisions through three unique lenses. The first lens is financial; managers must seek to make an acceptable return for owners. The second is an ESG lens, defined as a robust understanding of controversies, governance, exposures and company policies; a necessary defence against financial and reputational risk. The third lens is the measurement and maximization of total investment impact. Responsible investors need the tools to help better understand the effect, short and long term, that their investments are having on people, planet, and pocket. Util is currently the only provider of data and metrics that supports this third lens of responsible investing, providing standardized metrics that cover the entire listed equity universe.