FactSet Research Systems Inc. (FDS) — ESG & Values Scores

Environment story

FactSet operates as a financial data and software company with limited direct operational environmental footprint. No Scope 1, 2, or 3 emissions disclosures are provided in available filings. The company acknowledges increased scrutiny regarding ESG and sustainability matters and faces criticism related to its climate and ESG products. No net-zero target, renewable energy commitments, or decarbonization initiatives are disclosed. The company references sustainability reporting but provides minimal quantitative environmental metrics in 10-K or proxy materials. The lack of disclosed emissions data and net-zero commitments results in significant deductions per rubric.

Criticisms on file

Increased scrutiny regarding ESG and climate products; criticism from political leaders and groups opposing ESG-focused products
Source: FDS 10-K Item 1A Risk Factors - Increased scrutiny with respect to sustainability matters

Disclosed initiatives

Sustainability Report Publication

Company publishes sustainability report available at https://www.factset.com/company/sustainability
Corporate Responsibility Program

Investment in communities through the FactSet Charitable Foundation supporting educational programs and underserved students in technology and finance careers

Community engagement; no direct environmental impact disclosed

Social story

FactSet employs 12,800 employees across 35 offices in 19 countries as of August 31, 2025. Approximately 80% of employees are located outside the U.S., primarily in India and the Philippines. The company emphasizes collaborative culture, innovation, and employee recognition. No material documented union-suppression activities, strikes, or major labor disputes within 24 months are disclosed. No CEO-to-median-worker pay ratio is provided; CEO pay data present but median worker compensation not disclosed, preventing precise ratio calculation. Leadership diversity metrics are not explicitly disclosed as percentages in proxy materials. No disclosed supply-chain audits revealing human-rights hazards. The company maintains a Code of Business Conduct and Ethics and emphasizes human capital management.

Criticisms on file

Material weakness in internal IT general controls affecting revenue, accounts receivable, and deferred revenue processes; remediation ongoing through fiscal 2026
Source: FDS 10-K Item 1A Risk Factors - If we fail to maintain proper and effective internal control and remediate any future control deficiencies

Disclosed initiatives

Collaborative Culture and Employee Development

Company emphasizes collaborative culture recognizing innovation, offering variety of opportunities and experiences; focus on high-quality employee engagement to deliver quality products and services

Employee retention and engagement; competitive advantage in talent market
FactSet Charitable Foundation

Grants to non-profit organizations supporting educational enrichment, college pathways, and technology/finance career development for underserved students

Community education and social impact; workforce pipeline development
Global Workforce Representation

12,800 employees across 35 offices in 19 countries with significant international presence in India and the Philippines

Diversity of workforce geographically; exposure to emerging markets and labor dynamics

Governance story

FactSet exhibits strong governance structure with a fully independent Board Chair (Malcolm Frank) and 9 independent directors out of 10 total (90% independence). All three Board committees (Audit, Compensation & Talent, Nominating & Corporate Governance) are fully independent. The company operates a single-class share structure with no dual-class voting provisions. Recent governance enhancements include phase-out of classified board (fully declassified as of 2025), removal of supermajority voting, lowering special meeting threshold to 25% ownership, and annual director elections. Board is highly refreshed with four new independent directors since 2021. No material antitrust proceedings, consumer-safety enforcement, or financial-fraud regulatory actions are disclosed in available filings. The company does not make direct corporate political contributions. No evidence of active lobbying to weaken climate or consumer-protection regulations is disclosed. The company disclosed a material weakness in IT internal controls, but this is being remediated.

Criticisms on file

Pending class action litigation (Dinosaur Financial Group LLC et al. v. S&P Global, Inc. et al.) relating to acquisition and operation of CGS business
Source: FDS 10-K Item 1A Risk Factors - Adverse resolution of litigation or governmental investigations
Material weakness in internal IT general controls supporting revenue, accounts receivable, and deferred revenues; remediation efforts placing significant burden on management through fiscal 2026
Source: FDS 10-K Item 1A Risk Factors - If we fail to maintain proper and effective internal control and remediate any future control deficiencies

Disclosed initiatives

Board Declassification

Completed phase-out of classified board; board fully declassified as of 2025 Annual Meeting with annual elections of all directors

Enhanced stockholder voting power and governance accountability
Removal of Supermajority Voting Provisions

Eliminated supermajority voting requirements; proposed further amendment to change stockholder action by written consent from supermajority to majority (Proposal 6)

Increased stockholder rights and accessibility to corporate governance mechanisms
Lowered Special Meeting Threshold

Reduced ownership threshold for stockholders to call special meeting from 50% to 25%

Enhanced minority stockholder rights and voice
Board Refreshment and Succession Planning

Four new independent directors appointed since 2021; strategic CEO succession planning culminating in appointment of new CEO Sanoke Viswanathan in 2025

Governance continuity with fresh perspectives and competency diversification
Independent Board Leadership

Independent Board Chair (Malcolm Frank) and independent Lead Director (James McGonigle, retiring December 1, 2025); all committees chaired by independent directors

Separation of CEO and Board Chair roles; robust independent oversight
Stockholder Engagement

Board and management conduct ongoing dialogue with large stockholders on governance, compensation, and sustainability matters

Responsive governance aligned with stockholder interests

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of FactSet Research Systems Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open FactSet Research Systems Inc. in the app for interactive charts and portfolio building.

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