Qontigo has established an exclusive partnership with the International Institute of Green Finance (IIGF) in China, a data provider that focuses on ESG ratings for domestic fixed income and equities, according to a joint statement from both firms.
The partnership will enable Qontigo to develop indices under the Stoxx brand names, as well as to integrate the data within its Axioma portfolio construction and risk management software.
Part of the Deutsche Böurse Group, Qontigo was created in 2019 through the combination of Axioma, DAX and Stoxx. Meanwhile, Beijing-based IIGF of the Central University of Finance and Economics is an independent and non-profit think tank that supports the development of green finance in China.
The IIGF ESG database currently includes all A-shares listed companies and Chinese bond issuers (collectively around 8,956 companies). Its database is focused on four main areas of coverage: climate finance, green finance, energy finance and health finance. IIGF’s ratings are based on proprietary “green evaluation” and “ESG evaluation” systems, which comprises both qualitative and quantitative indicators of ESG contribution, as well as negative indicators arising from company behaviour and risks.
“Having a partner embedded in the local Chinese market gives us – and in turn, our clients – a deeper, more nuanced view of the companies they evaluate,” Rick Chau, head of Asia-Pacific at Qontigo, said in the statement.
“It’s important to recognise the role that China plays in the global ESG supply chain: the insights gained IIGF will help clients better understand risk and performance of large corporates throughout the world,” he added.
Qontigo currently partners with other data providers within the sustainability space, including Clarity AI, ISS and Sustainalytics, and has launched sustainable indices covering ESG, climate and low carbon universes, according to the statement. The firm has also recently become a signatory of the UN’s Principles for Responsible Investment (PRI).