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.
Royal Dutch Shell Court Order Shifts Paradigm for Corporate ESG Accountability
On 26 May 2021, the Court of The Hague orders Royal Dutch Shell (RDS) to reduce CO2 emissions to a net 45% by the end of 2030 compared to 2019 through the Group Policy of the Shell Group. The order of a national (Dutch) court demands that a global company (RDS) fulfills its obligations under the Paris Climate Agreement, although RDS was not a party in that agreement, and there is no legal equivalent in The Netherlands. What are the broader consequences of this order, also globally and for other companies and potentially also other jurisdictions?
Unwritten Risks – The True Costs of Mispriced Climate Change
Research shows that Property & Casualty insurance underwriters are not accurately pricing climate risks, and US government policy and program decisions are proving to be unsustainable. In our most recent blog, Justin Cheng talks about the resulting premium pricing corrections in the wake of intensifying extreme weather events. With this trend, a significant number of US homeowners are unable to obtain property insurance while taxpayers take on the increased cost of climate risk.
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:
How Climate Gentrification is Increasing Real Estate Costs and Socio-economic Disparities
Climate gentrification is an emerging concept describing how land with greater resiliency against intensifying physical impacts of climate change becomes more desirable and valuable. It catalyzes fast and visible socio-economic transformation in communities.
Prioritizing Patient Care and Staff Safety in a Pandemic
Medical facilities, including hospitals and long-term care facilities, are under tremendous pressure to provide quality healthcare for patients while ensuring patient and staff safety amidst the COVID-19 pandemic. By using Sustainalytics’ ESG Risk Rating to understand better the risks faced by companies, and the current state of preparedness within the medical facility subindustry, investors can identify the most relevant points to address when engaging with companies and analyzing potential ESG impacts in their portfolios.
Value-Based healthcare: are companies embracing the change?
National healthcare budgets are steadily growing worldwide. Increasing budget pressure, ageing populations and the rise of chronic diseases[i] are pushing both developed and developing markets to look for more effective healthcare delivery methods. In the United States, where national health expenditures peaked at USD 3.5 trillion in 2017, the Centers for Medicaid and Medicare Services (CMS) projected the healthcare budget will increase at an average annual rate of 5.5% in the next decade.[ii] [iii] In the United Kingdom, around 70% of healthcare spending goes to the treatment of chronic conditions.[iv] As governments and healthcare providers examine ways to contain healthcare costs without sacrificing quality of the service, value-based healthcare (VBHC) has emerged as a potential solution to create a more affordable, efficient and inclusive healthcare system.
Potential ESG Risks in the US Health Care Industry
The US health care industry is facing some uncertainty under the current administration. Recent news coverage focused primarily on the failed attempt to repeal the Affordable Care Act, but question marks related to deregulation and pricing remain. Investors will need to monitor developments closely to ensure they proactively manage emerging ESG risks.