In Q1 clients and other market participants joined us for a roundtable event in New York. Discussions cantered on alternative data, sustainability and new datasets that drive investment decisions within global markets.

During the roundtable, we presented an assessment of our clients' views on the importance of sustainability for investing purposes generated through global surveys and multiple follow-up calls and interviews. This has been key to our efforts to integrate sustainability data into BD Advanced in a way that meets our clients' needs, including contact titles, job functions, issuer, security and fund-level scores and qualitative focus attribution information on funds, accounts, and contact.

Between our research and discussions at the roundtable, five key themes and consistent challenges have emerged. Here are our top five takeaways on sustainability data for investment purposes, all of which have informed the way in which we are integrating this data into BD Advanced.

1. Moving beyond a score
   While sustainability scores proliferate within the industry, no definitive scorecard has emerged. In part, this reflects the fact that buy-side firms have their own internal scoring metrics, choosing how to aggregate multiple sustainability scores and other factors when assessing sustainability as part of an investment decision. What's increasingly important is to have visibility of fund mandates to allow clients to make better decisions based on their own criteria. Providing a filter for sustainable investment criteria, for example to identify firms that have specific emissions reduction targets or that exclude firearms, is a more useful option.

1. Digging into green bonds
   Green bonds are often the quickest and easiest way for a firm to increase its sustainability credentials. However, it's clear that the market does not consider meeting the criteria for a "best-in-class" green bond sufficient. An oil and gas company issuing a sustainable/green bond might meet the specific criteria for green bond classification, but the issuer may well still have an overall low sustainability score. To make the right investment decisions that meet their sustainability criteria, investors want much more granular detail. Within BD Advanced this will include ownership information, scores and details on the issuer and security profiles and qualitative sustainability attributes for deeper and holistic analysis.

1. Thematic vs impact investing
   Investors looking at sustainability also must consider whether they will make impact or thematic investments. The longer-term, more general outcomes looked for in thematic investing vs the specific and measurable sustainability outcomes required in impact investing often require different datasets. Investors want to make accurate decisions based on their specific sustainability criteria so embedding these details into profiles on BD Advanced is a key way to support our clients' research and decision-making.

1. AI and sustainable investment data
   Integrating artificial intelligence (AI) into sustainability data enhances the usability and functionality of the datasets and the analysis tools. AI will facilitate improved cross-referencing and better recommendations for review of other records, accounts or contacts that might also meet investors' preferred criteria and, long-term, enhance transparency and accessibility for sustainability metrics.

1. The sustainability journey
   Sustainability is more complex than a simple score or classification. Investors and users need access to a wide range of data, in a searchable and user-friendly format, regularly updated to account for changes to criteria or sustainability attributes and scores. This is the only way to facilitate individual sustainability requirements across the market. Efforts to create a "one size fits all" approach are unlikely to solve the problems associated with varying criteria and specific priorities based on, ultimately, end consumer/investor preferences.

Incorporating sustainability data into the BigDough data set offers an additional layer for the institutional investor market and is being well received by our clients. Our sophisticated measurement and insight into sustainability performance shines a light on sustainability risks and opportunities in a manner that allows our clients to create their own scorecard and metrics. The data is produced with a unique combination of verified company disclosures, review of potential controversies and in-depth company engagement via the 20+ years of S&P Global Corporate Sustainability Assessment (CSA).

Learn more about the new capabilities of BD Advanced and its sustainability profiles and scores.

S&P Global provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.