Datayes ESG Data: Its Advantages and Usages

Advantages ?of Datayes ESG Data

Comprehensive

Datayes ESG database data source is authoritative and more comprehensive.

The source of basic data contains Datayes ESG data covering corporate annual, quarterly, and occasional reports, CSR reports and other types of company announcements, and the earliest date of CSR report of CSI 800 historical data can be traced back to March 19th, 2007, which is a data provider with longer timeframe of CSI 800 constituent data coverage in the market.

The source of dispute data contains publicly disclosed information, authoritative information released by government websites, regulatory agencies, industry associations, etc. It covers 10 types, which is relatively rich in types, and the relationship contains the Company and its branches, the top ten shareholders, the subsidiaries involved in and controlled by the Company, the major customers and suppliers, which is a more comprehensive data.

The source of public opinion data contains the most valuable news data from mainstream financial media, related industries, government departments, and WeChat official accounts’ articles with high customer attention. Currently, it covers 800+ websites, 3,700+ micro signals, and the underlying daily news increase is 90,000+.

In addition, the ESG database is penetrated with Datayes's own databases of A-share, industry and commerce, news and other business modules, which facilitates multiple verification of data and improves data quality while supplementing the current problem of insufficient disclosure of ESG data.

Highly Expandable

Datayes's ESG data is highly expandable, responding more quickly to market changes and meeting investment research needs. The general and industry indicators in the basic data have been incorporated into the explanatory indicators; in addition to the data required for the explanatory indicators, the basic database also standardizes the collection of data from the rest of the social responsibility reports. The existing primary, secondary and tertiary issues are all inclusive to a certain extent, and not only numerical information but also textual information can be stored, which facilitates the expansion of the indicator system. The rating data model is open and transparent, with rich data dimensions, and investors can carry out secondary development according to regulatory requirements, market and customer needs.

Highly Specialized

Datayes Data is dedicated to creating ESG (Environmental, Social, and Governance) data that embodies Chinese characteristics, while also aligning with global advanced concepts. This commitment is evident in their approach, which integrates widely recognized international standards and indicators within the framework of sustainable development. These standards include the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), International Integrated Reporting Council (IIRC), ISO 26000, World Economic Forum (WEF), International Finance Corporation (IFC), Sustainable Development Goals (SDGs), and the United Nations Global Compact (UNGC).

Datayes ESG data stands out in the industry for the granularity of its indicators. It is tailored to the needs of China's investment market, incorporating specific nuances of the country's concept of high-quality development. The data is distinctly Chinese, focusing on local conditions and staying abreast of the latest trends and hot topics in domestic ESG policies.

Moreover, Datayes ESG data includes indicators unique to the Chinese context, such as those related to "precise poverty alleviation" and "rural revitalization". These indicators reflect the specific socio-economic and environmental challenges and goals within China, demonstrating the company's commitment to providing data that is not only globally informed but also locally relevant and future-oriented.

Usages of Datayes ESG Data

Investment Management

As verified by the back testing results of Datayes ESG data scores in the past 5 years, Datayes ESG data scores paired with investment portfolios can obtain alpha returns, and Datayes ESG score ratings have good application effects in positive screening and negative exclusion, etc. Financial institutions or index providers can formulate investment strategies by selecting companies with higher ESG ratings to form ESG indices or tracking ESG indices. On the contrary, investors can also effectively avoid "black swan" risks such as flash crashes and thunderstorms through negative screening.

According to the SZSE, from the base date of June 29, 2018 to June 30, 2022, the annualized returns of the SZSE ESG, the ChiNext ESG and the 100ESG are 9.4%, 17.0% and 11.7%, respectively, with the operating characteristics basically in line with those of the parent indexes, and the correlation coefficients of the daily returns are all more than 0.99, with a slight advantage in return performance. The annualized returns of the SZSEI ESG Leader, the GEM ESG Leader and the 100ESG Leader were 9.8%, 17.5% and 14.0%, respectively, significantly outperforming the parent indexes, with annualized excess returns of 1.5%, 2.5% and 2.5%, respectively.

Risk Management

ESG behavioral performance is incorporated into the credit analysis framework, complementing the analysis of business and financial indicators, and is used in customer guidance, due diligence, supply chain management, and credit risk management processes. Taking the banking industry as an example, a number of banks and due diligence organizations have embedded environmental (E), social (S) and governance (G) performance as non-financial indicators in customer credit evaluation, which is used throughout the entire credit business process. For enterprises with excellent ESG ratings and low environmental and social risks, banks will give priority to differentiated pricing and credit policies.