GLOBAL - Risk management and corporate governance services provider RiskMetrics has announced its acquisition of KLD Research & Analytics, a provider of environmental, social and governance (ESG) research and indexes for institutional investors.
Together, New York-headquarted RiskMetrics and Boston-headquartered KLD aim to offer institutional investors a comprehensive suite of ESG services so they can more easily incorporate ESG analytics into their investment processes.
"The acquisition by RiskMetrics will allow KLD to assure that its objective in achieving global coverage and global scale in its research in indexes will be met," Peter Kinder, president of KLD Research & Analytics, told IPE.
"RiskMetrics brings some different approaches and different types of research to the table, while KLD has a 21-year record with indexes and in-depth SRI research. We are currently merging staff, consolidating products and laying some very exciting groundwork for the next generation of ESG research products."
"Our clients have indicated that ESG performance is a critical benchmark of a corporation's risks and long-term value," said Knut Kjaer, President of RiskMetrics Group. "KLD's ESG capabilities, combined with our financial risk and corporate governance experience, will give investors worldwide a more thorough picture of sustainability and risk across geographic and industry boundaries."
Led by Kinder and COO Tim Brennan, KLD, which was founded in 1988, provides ESG research, compliance screening and indices to over 500 investment professionals worldwide. RiskMetrics currently provides sustainability data, compliance screening, climate risk management and advisory services to more than 400 global institutions.
The acquisition was agreed in August.