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Nasdaq Launches ESG Footprint to Improve Impact Investing Decisions

Nasdaq Launches ESG Footprint to Improve Impact Investing Decisions

With the launch of its latest ESG data service—Nasdaq ESG Footprint—Nasdaq now empowers institutional and retail investors to better understand the sustainable impact of their global portfolios.

Nasdaq ESG Footprint analyzes the sustainable competitive advantages and disadvantages of more than 13,000 globally listed companies from 60 different global data sources. Investors can leverage the analytics to help inform portfolio construction and risk management decisions at the portfolio- and individual security-level, including:

  1. Building global portfolios tilted toward higher-scoring ESG companies without compromising return
  2. Comparing an objective ESG ranking for a company in a given portfolio against its peers
  3. Reporting sustainable investing metrics and actionable analysis to clients
ESG Footprint Dashboard Example

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Created in partnership with Matter, a Copenhagen-based fintech company, Nasdaq ESG Footprint is available in both dashboard and report form, and through a machine-readable API to power a range of portfolio analytics solutions.

Announced May 14, 2020, Nordea Bank is the first major client to license Nasdaq ESG Footprint. Nordea has white-labeled the platform under the name “Nordea Sustainability Footprint” to make independent ESG rankings data available to its savings advisory clients.

We believe the Nordea Sustainability Footprint will help our customers to better understand what sustainability means in relation to investments, so that the importance of making sustainable choices becomes more evident.
Anders Langworth, Head of Sustainable Finance, Nordea

The launch of Nasdaq ESG Footprint comes amid accelerated growth in impact investing. According to a 2018 report by the Global Sustainable Investment Alliance, global sustainable investing reached $30.7 trillion in 2018, a 34% increase as compared to 2016.

Millennials are reported to be the most interested in ESG investing. Research from Bank of America Merrill Lynch highlighted that 90 percent of millennials are either already engaged in “impact investing” or wanting to do so. To this end, the firm estimates that millennials could be responsible for inflows of $15 to $20 trillion into U.S.-domiciled ESG investments over the next two to three decades. Gen X has also emerged as prominent investors in ESG according to a Wall Street Journal report. Jackie VanderBrug, Bank of America’s Head of Sustainable and Impact Investing, told the Journal that Gen X’s interest in ESG-related investments has climbed faster than that of any other generation in recent years— and this generation typically has more money to invest.

Nasdaq ESG Footprint is Nasdaq’s most recent initiative designed to address the increased demand for data and workflow tools to inform impact investing. At the intersection of ESG and Capital Markets, Nasdaq’s data analytics and technology are uniquely positioned to help solve investor challenges related to impact investing.

View a sample report from Nasdaq ESG Footprint, showcasing an in-depth analysis of a portfolio’s ESG impact.



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