Resource Center

This years edition of Sustainalytics’ 10 for series takes a deep dive into some of the most pressing environmental, social and governance (ESG) issues affecting companies that contribute to the global food value chain.

In this report, we look at the potential synergies between Sustainalytics’ ESG Risk Ratings and Morningstar’s Economic Moat Rating. As a part of our research, we constructed a back-testable investment strategy and portfolio by segmenting stocks with low ESG risk and a wide moat. While both metrics worked independently, they performed exceptionally well in combination.

Good environmental, social and governance (ESG) performance is not just about meeting investor demands. From revenue generation and raising capital to talent acquisition and employee retention, strong corporate ESG performance can influence key aspects of a company’s operations.

As the social and economic challenges of 2020 continue to unfold and markets remain in flux, the resilience of Environmental, Social, and Governance (ESG) investing marks a silver lining. In the context of today’s bear market, investors are demonstrating their preference for sustainable funds over traditional ones, with Q1 2020 seeing a global influx of USD 45.6bn, compared to outflows of USD 384.7bn for the overall fund universe. Europe has continued to account for the majority of this inflow into sustainable funds, while the U.S. has picked up pace with a 100% y-o-y increase, the highest regionally. Furthermore, Morningstar reported that 89%, or 51 out of 57, of its sustainable indices outperformed their market peers in Q1 2020. For ESG practitioners, this may not come as a surprise as experience has shown that companies with robust corporate cultures and sustainable business practices are best-positioned for long term resilience and growth, leading to stickiness of ESG investments.

Sustainalytics´ ESG Performance Analytics provides companies with an in-depth assessment of their ESG Risk Rating compared relatively to a select number of industry peers.

As our global community continues to endure an altered way of life amidst the on-going COVID-19 outbreak, it is only natural to ask what each of our lives, professional and otherwise, will look like on the other side. Once children and teachers go back to school and workers return to their offices, will our society have done everything it could have to mitigate the social and economic impacts of this crisis and will we have built in resiliency against future system shocks?

Our experts will assess the ESG impact of a company’s activities and products, including corporate social responsibility programs, supply chain spending, and operations.

Sustainalytics´ Peer Performance Insights suite of products provides information about the company’s ESG Risk Rating and its components compared to a select number of industry peers.

Sustainalytics’ Corporate Impact Report calculates the social, environmental, and economic impact of a business, focusing on the material issues that are most relevant to its industry and region.

Water may not be a top-of-mind concern for most investors, but it could turn out to be one of the most important investment themes of the 21st century. Market opportunities related to the water industry could reach USD 1 trillion by 2025.[1] As the issues of water quality and availability continue to make headlines, more investors are searching for opportunities to mitigate social and environmental risks while supporting sustainable solutions.

Issuers looking to support their sustainability strategy through sustainable finance solutions have several options, from sources of debt to equity instruments. These solutions include Green Loans, Sustainability Linked Loans, Green Bonds, Sustainable Bonds and more.