ESG
With precise data, Syntax empowers investors to make better decisions that align with their own ESG values, themes and priorities. In support of incorporating ESG into investment practice, Syntax is a UN PRI service provider signatory.
Syntax’s Functional Information System (FIS®) is a data-driven tool that enables users to identify inclusion and/or exclusion of certain activities across investments, investigate the exposure of such investments across material ESG categories, and illuminate the reality of investments based on personal ESG values and company-specific business activity.
Syntax deploys proprietary ESG business involvement data derived from regulatory filings as well as supplemental data sourced from multiple third-party providers. This wealth of data, covering nearly over 10,000 public companies worldwide, may be utilized for diverse applications and ultimately empower stakeholders to uncloak the ESG characteristics, or lack thereof, within a company’s product lines.
In concert with our patented FIS system, Syntax leverages third-party ESG data to maintain a comprehensive suite of data that satisfies both traditional financial indicators, alongside ESG-specific indicators. It is our firm belief that having a full-picture view of how a company operates, what it spends its money on, how much it is emitting, and how fast they are adapting to a more decarbonized market is quintessential. We work with our clients, partners, and stakeholders to understand their ESG priorities and pin-point them accordingly within our system, which then drives further solutions, such as index construction, ETFs, and other financial products.
ESG Solutions
ESG Taxonomies
Syntax’s ESG taxonomies can be used to develop unique lenses that capture a specific universe based on personal ESG preferences. Attributes of the taxonomies include the ability to:
- Screen companies by true business involvement, down to product-line level.
- Apply customizable and diverse inclusion and/or exclusion taxonomies based on responsible investing, ESG, and/or sustainability values.
- Obtain granular portfolio analysis capturing ESG risks and opportunities for diverse applications, including due diligence.
SDG Aligned and Misaligned Taxonomy
While other SDG data providers focus on company-reported commitments to the SDGs, Syntax uses its patented business involvement data to determine a company's revenue-based impact on the SDGs.
Clean Energy Transition Opportunities Taxonomy
The Clean Energy Transition Opportunities taxonomy is constructed around the central thesis that while a coming clean energy transition will pose significant risks to businesses across the economy, certain companies are positioned to benefit from a transition to a low-carbon, renewable, and electrified economy.
Clean Energy Taxonomy
The Clean Energy universe includes companies that generate electricity from renewable energy sources, manufacture or distribute equipment or parts for renewable energy producers, make batteries and associated materials, produce electric vehicles and charging equipment, produce biofuel and ethanol, produce hydrogen fuel cells and associated equipment, or provide financing for renewable energy related products.
ESG Materiality Taxonomy
Syntax has developed its own in-house ESG materiality map that carves out material topics across business line activity exposure.
Extraction by Resource or Activity Taxonomy
Syntax can identify product line exposure for companies that may slip through the cracks, such as firms involved in fossil fuel extractions as secondary and tertiary business lines. This lens can get as granular as the metal type and region of extraction.
Fuel Cell Hydrogen Taxonomy
The Fuel Cell Hydrogen universe is made up of a collection of companies that are involved in the hydrogen and fuel cell ecosystem, from hydrogen gas companies to fuel cell power generators.
Water Taxonomy
Whether it be exposure to companies that operate in the development of water infrastructure, water treatment, or water supply, to name a few, Syntax has encapsulated the world of water with respect to company operations and business lines.
Custom ESG Taxonomies
Biodiversity Enablers Taxonomy
The Biodiversity Enablers lens will include publicly traded companies that generate revenue from, or are currently developing, technologies and products that contribute to biodiversity preservation or renewal. The products and services of these companies enable more ecologically sustainable supply chains across industries. They can contribute to the protection of one or more of the following ecosystems: Land, Ocean, Freshwater.
Blue Economy Taxonomy
The Blue Economy lens captures companies engaging in one of the fastest adapting industries, across marine renewable energy, recycling technologies, and sustainable aquaculture.
ESG Indices
Using our stratified weighting methodology and the knowledge of our in-house experts, Syntax is able to develop and curate customizable and efficient indices.
ESG Scorings and Ratings
Syntax’s proprietary ESG scores can be overlaid onto index constituents to determine inclusion and/or feed the weighting of metrics.
- Scores leverage both FIS data and multiple third-party ESG data to pinpoint material ESG risk.
- Utilizes Syntax’s in-house materiality map with a focus on up-to-date trends on ESG scoring approaches.
Customized ESG Scorings and Ratings
ESG inherently looks and feels different across each and every stakeholder. Because of this, Syntax has built customized ESG scoring solutions to enable a stakeholder-centered approach for:
- Self-quantifying levels of importance across each ESG bucket,
- Grouping companies based on ESG materiality preference, and
- Exclusion and/or inclusion of certain ESG metrics (i.e., greenhouse gas emissions).
ESG Research
Breaking Down the Basics
At Syntax, we believe that education and thought leadership play a pivotal role in the ever changing landscape that embodies ESG. Our Breaking Down the Basics series is where we dive into the basics of the most popular topics in ESG investing.
View ResearchESG Nuggets
Together with our Breaking Down the Basics series, we publish ESG nuggets to showcase the FIS classification system and highlight different ESG topics across various themes and market trends.
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