Engine No. 1 Unveils ESG Framework to Scrutinize Investments

Engine No. 1, the activist investor that forced a board shakeup at Exxon Mobil Corp. to accelerate a move to clean energy, unveiled a new strategy using environmental, social and governance data to assess investments.

In a 38-page report released on Monday, the money manager said it would integrate ESG data with conventional financial analysis to scrutinize companies and pick investments. The “total value framework” seeks to predict how performance on ESG concerns affects a company’s value.

“ESG data is as core to the investment process as financially driven analysis,” Chris James, founder of San Francisco-based Engine No. 1, ...