Thematic Engagement
The purpose of Thematic Engagement is to influence companies to proactively manage specific ESG risks and opportunities, as well as enabling the participating investors to play an active role in addressing material, shared sustainability challenges through raising sector and systemic standards in alignment with the Sustainable Development Goals (SDG) agenda.
Thematic Engagement Bundle
Our Comprehensive Thematic Engagement program combines a set of four thematic engagements in a single package: Climate Transition, Human Capital and the Future of Work, Plastics and the Circular Economy and Tomorrow’s Board. The themes have been selected to give investors the broadest possible coverage of E, S and G topics with exposure to diverse industries and companies.
Global Standards Screening
Sustainalytics’ Global Standards Screening product provides an assessment of a company’s impact on stakeholders and the extent to which a company causes, contributes or is linked to violations of international norms and standards. Download the brochure to learn more about how Sustainalytics identify the Global Sustainability Signatories.
Country Risk Rating
The Country Risk Ratings measure the risk to a country’s long-term prosperity and economic development by assessing how sustainably it is managing its wealth. It can be used to support country assessments and help investors anticipate and manage emerging risks with an analysis of events happening in a country
Global Access
Sustainalytics’ Global Access is our flagship platform for accessing our ESG research. The user-friendly interface includes functionalities that enable investors to read detailed company reports with qualitative analyses, screen companies on ESG criteria for security selection and product creation and run custom reports to communicate ESG performance. With the alerts functionality, clients can monitor their portfolios for ESG incidents and controversies.
EU Action Plan - EU Taxonomy
Our EU Taxonomy Solution provides ESG research and data that assesses clients’ holdings and portfolio alignment to the EU Taxonomy. We currently offer a Taxonomy Data solution and a Managed Portfolio Service. The Managed Portfolio Service provides a portfolio-level alignment assessment and the Data solution provides company-level assessment along with the supporting underlying company-level data. Companies receive one of four assessments: Aligned (/With Warning), Partially Aligned (/With Warning), Not Aligned and No Evidence.
Arms Trade Research
Sustainalytics’ Arms Trade Research enables investors to identify all publicly-listed companies that sell arms to sanctioned countries or countries where there is a high risk of violence against civilians. Our Arms Trade Research can help manage the reputational risks associated with investing in companies that supply arms to controversial regimes. Download the brochure to find out more.
A Case for Impact Investing in Public Equities
As awareness around environmental and social issues has grown, so has the number of investors who deliberately seek to allocate capital to create positive social and environmental impact. Impact investing is as old as the sustainable investment industry, with the bulk of strategies to date having been executed through private equity and debt vehicles. However, as a more diversified pool of investors look to adopt impact investing strategies, fueled by the United Nations’ Sustainable Development Goals (SDGs) and the Paris Climate Agreement, a broader set of asset classes are being considered – here enters public equities.
Sustainable Finance and the EU Taxonomy: Developments from the Trilateral Negotiations
As global leaders meet in Madrid for the COP25 amid mounting concern over the international response to climate change, the EU Taxonomy experienced a setback with the UK and France blocking the plans. The new framework, intended to drive financial flows that will accelerate the shift to a low carbon future, will likely become a global standard affecting investors around the world. If enacted, it could cement the EU’s position as the world’s pace setter on climate legislation.
ESG Ratings: A Rebuttal of Prevailing Criticisms
“No offence, but…”. This has become a common introduction to questions directed at environment, social and governance (ESG) rating providers and reflects a body of criticism centered on the premise that ESG research and ratings are fundamentally flawed.
Passive ESG Investing: Q4 2018 Sample Portfolio Analysis
The global equities market experienced substantial growth over the first quarter of 2019 as the FTSE All-World (AW) index returned 12.5%. But this growth spurt comes on the tail of a significant selloff during the preceding quarter; the total return of the FTSE AW over Q4 2018 sunk to -12.6%.[i]
How will ESG investing fare in a volatile or bear market?
Much has been written about the rise of responsible investing and environment, social and governance (ESG) integration over the past decade. From 2014 to 2016, assets that systematically considered ESG factors in the investment process grew from USD 7.5 trillion to USD 10.4 trillion, with continued momentum over the past several years[i]. However, recent commitments to ESG integration (vs. values-based strategies) have yet to be tested by a significant market downturn. The spike in market volatility experienced in late 2018 has led some to question whether the consideration of ESG factors by investors will continue to flourish in a market environment characterized by investor fear and valuation corrections.
The Royal Commission Report: a new path for the Australian finance industry?
On Monday 4 February, the final report from the Royal Commission inquiry into misconduct in the Australian financial sector was published. It contained a scathing review of years of misconduct and of the failures by regulators to appropriately supervise and hold companies accountable. The report also provided 76 recommendations to fix these issues.