Investment services provider Charles Schwab announced today the introduction of third-party ESG rating for clients, providing access to MSCI’s ESG ratings on individual stocks through the Schwab.com website and in stocks’ Schwab Equity Ratings Report.

MSCI ESG Ratings are designed to measure a company’s resilience to long-term industry material ESG risk. The ratings model idnetifies industry leaders and laggards according to their exposure to financially relevant ESG risks and how well they manage them in comparison to peers. Companies are rated on a AAA to CCC scale relative to the performance of their industry peers.

Schwab stated that the new feature is the latest example of the company commitment to help clients personalize their investment portfolios. In November last year, its asset management arm, Schwab Asset Management, announced the launch of the Schwab Ariel ESG ETF (SAEF), aiming to provide investors with exposure to an actively managed ESG-screened portfolio of small and mid-cap stocks. Schwab has also an ESG Investing Hub to centralize information on ESG strategies, options and insights.

Malik Sievers, Head of ESG Strategy, Schwab Asset Management, said:

“A growing number of people want to align their investments with their beliefs and values. Having an easy way to review a company’s ESG rating during the research process is something today’s investors find useful as they seek to integrate ESG in their portfolios and evaluate a company’s resilience to ESG risks.”

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