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Constructing Zero Deforestation Portfolios to Combat Climate Change and Biodiversity Loss

The world’s forests are under threat, putting ecosystem services and global economic wealth in danger. But investors can help to fight deforestation. In this article, learn the reasons why investors should pursue zero deforestation portfolios.

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What is Greenwashing? 6 Types of Greenwashing Asset Managers Need to Know

Discover the 6 types of greenwashing asset managers should look out for when building a sustainable investment portfolio.

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Navigating Data Privacy and Cybersecurity Risks: Insight for Investors

In this on-demand webinar our knowledgeable panel delves into data privacy and cybersecurity issues investor need to know including risk drivers, market signals and company preparedness.

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The State of ESG Risk Across Industries: Three Key Takeaways From Our Annual Industry Reports

Morningstar Sustainalytics’ Annual ESG Risk Ratings Industry Reports are now available. Discover the cross-industry insights that emerge from this year’s reports and the research behind them.

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Regulating 'Forever' Chemicals: Examining Company Readiness and Investor Risk

Chemical companies face growing pressure to phase out some of the most hazardous substances from their product portfolios. Learn how well companies manage related risks and what upcoming regulations could mean for them and their investors.

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Webinar Replay | Product Governance Risk: Navigating One of the Most Common ESG Issues

Join Morningstar Sustainalytics for a panel discussion about ESG risk exposure, what this means and how to manage. In this webinar, we will focus on how Sustainalytics identifies drivers of product governance risk.

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Telecom Network Outages, the ESG Risks of a Connected World

The telecom industry is exposed to several Material ESG Issues, including Data Privacy and Security, Business Ethics, Human Capital and Product Governance. Product Governance issues in the telecom industry include service quality, maintaining reliable, high-speed networks, and responding to customer billing concerns.

ESG Risk Data Center

ESG Risks Affecting Data Centers: Why Water Resource Use Matters to Investors

Data centers play a critical role for many technology and telecom companies and for their supporting servers, digital storage equipment and network infrastructure for data processing and storage. Data centers require high volumes of water directly for cooling purposes and indirectly, through electricity generation. Morningstar Sustainalytics’ recent activation of the Resource Use Material ESG Issue (MEI) within its ESG Risk Ratings recognizes water risks of data centers.

shipping containers ocean

Ocean Carriers Facing Increased ESG Risk Amidst Supply Chain Crisis

Maritime shipping is the most common mode of transport for global trade, with around 80-90% of the volume of international trade in goods carried by sea. Complex supply chain challenges around the world made 2021 an exceptionally challenging year for retailers, exacerbating global inflation. Still, it was also very profitable for ocean carriers and containership owners.

diverse patients waiting

Addressing ESG Risk in a Shifting Landscape for Clinical Trial Diversity

Low diversity in clinical trials increases the risk of unforeseen side effects, only discovered after the drug hits the market, exposing patients to harm and companies to litigation.

Mass Timber in Construction - Big Buildings, Smaller Carbon Footprint

As an innovation in the industry, mass timber construction emits significantly less carbon than traditional concrete and metal structures, while modular construction ensures usability across many building types. This article reviews some of the concerns over structural strength, fire safety, regulatory compatibility, cost savings and the sustainability of increased forestry. It then examines current mass timber buildings and projects and looks at their viability as an alternative material for the future.

esg risk

A Closer Look at Product Governance ESG Risk Management

In 68% of our engagements, product governance is a significant material ESG issue, but it is our experience that most companies underestimate the materiality of this risk to investors. For some industries, product governance represents on average more than 20% of ESG risk exposure, as identified within our ESG Risk Rating framework.

ESG Risks of Aging Pipelines for U.S. Energy Infrastructure Investors

Pipelines play a critical role in the U.S energy infrastructure transporting natural gas, crude oil, natural gas liquids, petroleum, and petrochemical products. While these pipelines play a vital role in supporting the U.S economy, investors are increasingly scrutinizing pipeline operators' long-term economic profitability and sustainability practices. A closer look into the status of pipelines reveals a particular issue that investors need to consider.

covid-19 vaccine storage dry ice

ESG Risk Exposure from COVID-19 Vaccine Transportation and Distribution

As mass vaccination against the coronavirus started, a key challenge has been to keep millions of doses of vaccines at the right temperature. An increase in temperature inside a truck or aircraft, by half a degree, for half an hour, would reportedly result in a 'defrosted' vaccine which has then to be discarded.

Impact reporting

Five Commonly Asked Questions About Sustainalytics’ Approach to Impact

We launched our new Impact Metrics product to support investors’ growing need for more robust data that can be used to demonstrate how ESG-focused strategies can deliver real-world social and environmental outcomes. Since the launch, I have connected with many enthusiastic institutional investors eager to make sense of the rapidly evolving world of impact, excited to dive into impact data, and cautiously optimistic about supporting their clients’ Sustainable Development Goal (SDG) and impact needs.

10 for 2021 report

10 for 2021: Investing in the Circular Economy

This report aims to support investors interested in gauging environmental, social and governance (ESG) risks and opportunities in the global food value chain. We survey key subindustries – from agrochemicals, agriculture and aquaculture to packaged food, food retail and restaurants – in search of solutions that may support the principles of the circular economy (CE). These principles include minimizing waste and pollution, extending the use-phase of products and ecosystem regeneration. Some of the key insights found in the report are:

Cruising Post-COVID-19: Lessons and Challenges for the Cruise Ship Industry

In this blog, we assess the impacts of COVID-19 on the cruise ship industry by taking a closer look at the four biggest cruise companies and their COVID-19-related controversies since February 2020. We also gauge their management of product governance and human capital issues, with the aim of informing investors of each company’s preparedness to address relevant risks as well as challenges and potential hurdles in the industry’s post-pandemic operations.

Beer, Wine & Spirits in the Era of COVID-19

Companies operating in the Beer, Wine and Spirits subindustry have suffered from knock-on effects of COVID-19 lockdown measures, as governments across the globe have moved to close hotels, bars and restaurants, and ban large events and gatherings, such as festivals and sports events. Given that these venues are an important source of revenue for alcohol companies, investors within this space may benefit from a closer look at how firms have adapted to the rapidly changing market conditions.

Coronavirus Healthcare Update: Pricing, Profit and Public Opinion

With this post, we continue to examine the ESG risks and opportunities inherent in the worldwide race to develop a treatment or vaccine for COVID-19.

Coal Investments: Up in Smoke?

Growing public concern over climate change is pushing investors to increasingly assess how their portfolios are pivoting to a low carbon economy. Because of its large carbon footprint, the coal industry is a prime target of environmental activism and divestment campaigns, and it is becoming the investable hot potato few want to hold.