TheESG Data and Analyticschapter of the OTM clarifies how portfolio-level ESG measurement works using external providers. It notes:
“Third-party ESG platforms such asMSCI ESG Manager, Sustainalytics, and Refinitivcan generateportfolio-level ESG risk scores, benchmarking against industry peers or market indices.”
These tools aggregate underlying issuer ratings, weighting them by portfolio exposure to provide composite ESG metrics. However, the manual cautions that such systems donot replace proprietary analytics, as investors often need deeper contextualization or forward-looking assessments.
Therefore, while these platforms are capable ofapproximating ESG risk at the portfolio level, they cannot fully substitute for in-house integration or bespoke analysis—supportingoption Aas the correct choice.
????Reference:2021-Final-Book.pdf, Chapter 7 — ESG Data Quality and Integration (Portfolio Measurement and Analytics section).
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