September 10, 2012
GMI and Trucost Form Partnership
by Robert Kropp
The strategic partnership provides for environmental research by Trucost to be incorporated into
GMI's analysis of the corporate governance performance of companies.
Two of the leading lights of environmental, social, and corporate governance (ESG) research and
analysis—GMI Ratings and Trucost—announced on September 8th a strategic
partnership, by which the environmental performance data compiled by Trucost will be incorporated
into the corporate governance ratings and research of GMI.
Both companies are
highly regarded by many sustainable investors, and the research data of each has been utilized by
many institutional investors to reduce ESG risks in their portfolios. Trucost contributes to
Newsweek's popular Green Rankings by
providing environmental impact assessments by quantifying publicly disclosed environmental data and
putting a dollar figure on those impacts.
GMI's corporate governance ratings have, in
recent months, highlighted the risks associated with News Corp.'s handling of the widely-publicized
phone hacking and bribery scandal, Wal-mart's efforts to contain an alleged bribery scheme at its
Mexican subsidiary, and recent divestitures of large holdings of stock in Facebook by several of
the company's directors.
"Given the potential impact of environmental mismanagement on a
company’s value, it has become increasingly important for investors and corporate stakeholders to
have a better understanding of which companies are actively managing risks around environmental
issues," a GMI press
release stated. "The Trucost data will bolster GMI's existing ESG metrics by offering more
visibility on when a company’s environmental performance is below average for its sector, or when
it hasn’t disclosed environmental data publicly."
Jack Zwingli, CEO of GMI said,
"Environmental risk is recognized as impacting corporate balance sheets, long term financial
performance and as a cause of negative events that damage reputations and value. For that reason,
investors and corporations are actively incorporating ESG into their decision making and
And Richard Mattison, chief executive of Trucost said, "Providing Trucost data
over the robust and comprehensive GMI Analyst platform enables the investment community to
integrate environmental risks and opportunities into their traditional analysis. A company that
manages its environmental efficiency and reporting to a high standard is a good proxy for all round