In Brief

BNY adds sustainable bond ETF

Fourth sustainable ETF in the company's lineup

BNY Mellon has added a sustainable ETF to its line, with the product launching March 22 on NYSE Arca.

The BNY Mellon Responsible Horizons Corporate Bond ETF (RHCB) is subadvised by Insight North America, a subsidiary of BNY firm Insight Investment. That firm, which specializes in fixed income and risk management, has a total of $1.2trn in assets under management, according to the announcement from BNY.

The product is BNY’s fourth ETF to feature sustainable investment and its sixth actively managed ETF, the firm stated.

“The ETF seeks to emphasize what Insight believes to be the best, and avoid the worst, performers on ESG issues, and to carefully consider the approach taken to investments in environmentally sensitive industries,” the company said in its announcement.

ISS adds water risk ratings

Measuring risk exposure and management

ISS this week began rating about 7,400 public companies on their water risk, a launch timed to coincide with World Water Day.

The ratings are based on 11 data points per company and are designed to assess its level of freshwater-related risk as well as its management of that risk, according to ISS. The water risk exposure classification is based on a company’s industry, geography and supply chain risks. The water risk management performance score, meanwhile, measures operational performance. Overall scores range from 0 to 100, indicating substantial or low and well-managed risks, the firm stated.

“Institutional investors can mitigate water risks across their investment portfolio by identifying industries and business activities that depend on or greatly impact water resources, and by actively engaging with company management to improve transparency with regard to water-related strategy and risk management,” the company said in its announcement on Tuesday.

The new rating will help investors “identify and manage freshwater-related risks in portfolios, build freshwater-focused portfolios, funds and indices, through to supporting their water-related stewardship and engagement programs.”

For-profits ahead of non-profits on ESG

Survey finds for-profits on top for sustainability initiatives

For-profit companies place more importance on sustainability and diversity programs than non-profits, according to a recent survey by PNC.

Some 70% of for-profit business leaders said social responsibility across the board is a very high priority, compared with 59% of non-profit leaders, the survey found. Meanwhile, 23% of for profits said it was somewhat important, as did 32% of non-profits.

Of those that indicated that social responsibility was important, 32% of for profits said environmental sustainability was their top concern, followed by diversity, equity and inclusion (22%) and employee benefits (13%). Sustainability was also the most common top concern among non-profits, at 19%, ahead of ethical business practices (10%) and community development and outreach (10%).

For-profit groups were also more likely to have sustainability initiatives or programs than non-profits, at 79% versus 67%. Additionally, 76% of for profits indicted they have DEI programs, while 59% of non-profits said so.

PNC commissioned a survey in December of 120 for-profit executives and 120 non-profit leaders. Most of the entities had annual revenue of $50m or more, according to the report.

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