Global corporate governance firm RiskMetrics Group Inc. is buying New York-based Innovest Strategic Value Advisors, an institutional research firm that focuses on sustainability issues.

Innovest, which was founded in 1995, specializes in analyzing companies’ performance on environmental, social, and strategic governance issues. RiskMetrics currently provides ESG research to more than 350 global institutions. The acquisition of Innovest adds an ESG analyst team of more than 50 research professionals and an integrated suite of ESG research and compliance-focused services.

In announcing the deal, RiskMetrics said that the acquisition of Innovest enlarges its footprint in the ESG research space “at a time when the financial community’s interests in sustainability are growing.”

“It would be an understatement to say that today’s turbulent market environment is placing an unprecedented premium on understanding the entire spectrum of investment risks – both traditional and non-traditional,” said Dr. Matthew Kiernan, co-founder and CEO of Innovest. “By combining Innovest’s ESG research with RiskMetrics leading capabilities in risk management and corporate governance, we can help investors make more-informed decisions.”

“Myriad long-term sustainability factors, particularly around climate change, are playing an increasingly important role in the way funds invest and view their portfolio risk,” said Stephen Harvey, head of the governance business at RiskMetrics Group. “Innovest is one of the few firms that has successfully taken a quantitative approach to assessing ESG issues, thereby helping investors view what are typically intangible, compliance-oriented issues through a clearer financial lens.”

The transaction, which is subject to customary closing conditions, is expected to close March 2.