Resource Center

This episode of ESG in Conversation explores ESG materiality and what a shift in political agendas globally could mean for the state of sustainability-related regulations.

In this article we define ESG materiality and highlight what investors need to know when considering the materiality of ESG issues in their investment portfolios.

This episode of ESG in Conversation dives into the SEC’s new climate disclosure rules and what they mean for companies and investors.

Child labor remains a persistent issue in the cocoa supply chain. So can major food brands do to stop it? Discover the steps companies can take to address the issue and ways investors can engage with companies to mitigate it.

Learn how AI technology is being leveraged in the world of ESG research and analysis in our latest episode.

Our analysis reveals that for companies, biodiversity and community relations are highly interconnected. To effectively address biodiversity-related risk companies should also consider social factors and engage with Indigenous Peoples and local communities.

As demand for critical raw materials increases, due in part to the low-carbon transition, industries reliant on those materials face growing risks. In this article, discover what’s driving those risks.

Socially conscious ESG investors are interested in how to implement international business and human rights norms in their portfolios and understand the potential impacts of applying additional screening criteria within their strategy.

The Russia-Ukraine conflict has put more pressure on a sector that was already constrained by the disrupted supply chains, brought about by pandemic-induced congestions and shortages. Additionally, the surge in fuel price is already affecting customers, although it may accelerate the adoption of electric vehicles (EVs) as a side effect. However, the scarcity of minerals, which are necessary for semiconductor manufacturing, may further exacerbate the chip shortage that has afflicted the automotive industry since 2020.

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.

The aviation industry is feeling the impact of rising fuel costs as an immediate repercussion of the conflict in Ukraine. In particular, the airline sector is still facing significant challenges in mounting a steady recovery from the COVID-19 crisis. On the other hand, the defense industry may be presented with opportunities in light of increased government spending in the aftermath of the invasion.

Investor interest in the banking sector remains high as the impact of Russian sanctions unfolds. Based on Morningstar Sustainalytics’ research, total unmanaged risk has increased for both Russian and international banks with exposure to Russian clients. To what extent have sanctions affected banks’ total unmanaged risk?

With growing scrutiny from stakeholders—international regulators and regional governments, NGOs, the general public, investors, and financial institutions—companies accused of human rights violations and environmental damage in their supply chains face substantial risks.

The invasion of Ukraine highlights the fragility of the global food system. The destruction caused by the war and subsequent trade restrictions on Russia, endangers a significant percentage of the global food supply coming from two of world’s leading agricultural commodity exporters, consequently prompting food prices to surpass the 30-year high.

Living Income is a crucial consideration among leading companies across some sectors and their supplier companies throughout the agricultural and food supply chain. Companies that manage ESG risk in their supply chains, making targeted investments to improve their resilience, are better positioned to build investor confidence.

As growing pressure to cut GHG emissions is causing Western oil majors to sell their high-carbon assets, it is expected that National Oil Companies (NOCs) will pick up some of the production. For investors holding an interest in or considering investing in NOCs or sovereign debt, it is worth assessing how fossil fuel production shifts will impact their portfolio’s alignment with climate ambitions and ESG values.

Corporates seeking to be socially sustainable must be able to comply with existing and upcoming legislation, mitigate reputational risks, and meet the evolving expectations of their stakeholders.

Human rights issues have been rising on the responsible investment agenda in recent years. The COVID-19 pandemic and the Black Lives Matter movement have provoked even more pointed discourse on the topic. The European Union’s current efforts to introduce rules to hold companies accountable for social and environmental risks in their supply chains further accelerate that ascent. This wave of legal requirements and normative expectations is impacting financial markets worldwide, with responsible business regulations already in place or quickly becoming valid.

This thematic engagement aims to improve the adoption of globally agreed corporate standards for managing and promoting human rights, as defined by the UN Guiding Principles on Business and Human Rights (UNGPs) and mirrored in the OECD Guidelines for Multinational Enterprises.

From a market perspective, engagement and voting on governance issues have been used as levers for influence for a long time. On the other hand, environmental and social issues were historically addressed from a values-based perspective or primarily for fact-finding purposes. Today, many responsible investors leverage corporate dialogue as a tool to influence and drive meaningful change and impact