Extra-Financial! Read All About It!

“Extra-financial” describes the business factors not included in financial statements that may impact business results. Extra-financial factors include Environmental, Social, and Corporate Governance variables associated with a business. Bloomberg (available in Lippincott Library and in Huntsman Hall) is an excellent source of “ESG” data for many public companies. Bloomberg can be used to collect data of ESG variables by company, or companies by ESG variable.

ESG Variables by Company

To see all environmental, social, and governance factors for a specific company, type the company’s ticker into the command line, then hit the yellow EQUITY key, then type FA and hit the green GO key.

For example, to see Merck’s ESG variables, type:

MRK US [EQUITY] FA [GO]

mrk2

Once you’ve opened up this financial analysis page, click on the 8) ESG tab to see a spreadsheet of data.

mrkesg

The “Overview” screen shows about 30 general ESG variables including a “Disclosure Score” indicating the amount of data a company supplies for requested environmental, social and governance factors. The Disclosure Scores range from .1 (minimum disclosure) to 100 (discloses information on all requested variables).  The scores are weighted by importance – for example, a company’s Greenhouse Gas Emissions are more heavily weighted than their Total Water Use. The Scores are tailored to the different industry sectors. Only data relevant to an industry is included.

The specific ESG tabs give greater details on the factors, including definitions. Some examples:

Book1

Here is a screen showing some of the specific variables for employment found under the 13) Social tab.

mrksocial

Companies by ESG Variables

To screen for a list of companies by environmental, social, and governance variables -

Type EQS and hit the green [GO] key.

EQS is the command for Equity Screening. Click on the Fields button. Now, expand the menu for Fundamentals, then Bloomberg Fundamentals. Now, click on ESG to see a list of available variables. Choose a variable of interest and input any metrics you’d like to narrow by. Click on Update, then hit and the GO key to view your results.  For example, here is the “drill” to find the variable “Employee Turnover.”

Fundamentals => Bloomberg Fundamentals => ESG => Social => Employee => Employee Turnover

You can do additional screening by geography, industry and company size.

The spreadsheet below shows the first few UK firms ranked by current year Employee Turnover. Because of non-reporting or lack of relevance for an industry group, there is a large amount of missing data for the ESG variables. For example, only about 5% of the UK public companies in Bloomberg report current labor turnover.

Bloomberg UK OK.xls

Take a look at the Bloomberg Help Guide for popular commands, guides, and cheat sheets. For more examples of data that can be found on Bloomberg take a look at Bloomberg Highlights: Round 1, Round 2, and Round 3. As well as our previous blogs on Launchpad: Part I and Part II.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s