Sustainalytics’ Research Report Aligns Ten ESG-Investment Themes
To the UN Sustainable Development Goals
Report also profiles 10 companies well-positioned on each ESG theme
Toronto, February 6, 2020 – Sustainalytics, a global leader in ESG research, ratings and analytics, today released a new thematic research report titled, 10 for 2020: Creating Impact through Thematic Investing. The report demonstrates how investors could create positive impact while investing in ten upside ESG investment themes. With the Sustainable Development Goals (SDGs) playing an increasingly important role in shaping the sustainability roadmaps of investors, governments and civil society groups, Sustainalytics’ assesses each investment theme against the SDGs. The report also profiles 10 firms well-positioned on each ESG investment theme. The ten themes fall under four broad categories:
- Scaling Big Tech (SDGs 8 and 9) – Sustainalytics evaluates how 5G will create financial opportunities and finds Cisco Systems is well positioned to capitalize on the growth of 5G given its talent management strategy and integration of circular economy principles. The firm also looks at the digitalization of the mining industry and notes that Anglo American is an early technology adopter, and effectively manages its ESG risks.
- Health and Society (SDGs 3 and 12) – Sustainalytics’ analysis shows that connected medical device producers may benefit from the rapidly growing Internet of Things health care market, and profiles Royal Philips given its strong governance and management of security issues. The report also focuses on opportunities to invest in apparel companies that implement slow fashion principles, noting that Kering stands to benefit from its sharpening focus on sustainable fashion.
- Ecosystem Stewardship (SDGs 14 and 15) – Sustainalytics examines how the new global sulphur cap for fuel oil will impact the shipping industry and features Maersk since it is well positioned on two material ESG issues – carbon own operations, and emissions, effluents and waste. In addition, the report looks at banks that are factoring biodiversity into credit risk assessments.
- Mitigating Climate Change (SDGs 7, 11 and 13) – With growing concerns about the viability of high-carbon business models, the report explores how some leading oil and gas companies, such as Total, are working to diversify into low-carbon products. Sustainalytics also covers how reinsurers are addressing climate risk by readjusting premiums, profiling Swiss Re given it offers novel reinsurance products to help mitigate the impacts of natural disasters.
“With the 10-year countdown to meet the SDGs by 2030 underway, the race is on for investors to identify compelling investment themes that also fulfill broad sustainability goals,” said Doug Morrow, Director of Portfolio Research at Sustainalytics. “Our 10 for 2020 report analyzes ten topical investment themes that we believe can deliver a range of social and environmental benefits.”
To access Sustainalytics’ 10 for 2020 report and listen to our podcast on the findings, please click here.