Banks’ ESG Risks Related to the Russia-Ukraine Conflict on Investors’ Radars
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?
Leveraging Blockchain to Improve Supply Chain Management - A Case Study for Household and Personal Products Companies
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.
ESG Impacts of the War in Ukraine: Global Food Supply
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.
The Sustainability Conundrum of Living Income in Agriculture
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.
The ESG Risks of National Oil Companies Taking Over Fossil Fuel Production from International Oil Majors
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.
Bringing Investors and Companies Together to Accelerate Human Rights Progress
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.
Human Rights Accelerator
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.
Recent market trends put engagement and voting front and centre for responsible investors
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
North American Material Risk Engagement Trends: ESG Reporting Frameworks, Emission Reduction Targets and Beyond
There are many factors that rating agencies consider within its overall assessment. For example, ESG rating companies tend to look for at least three years of ESG metrics to determine company trends and long-term ESG targets, goals, and strategies to manage and reduce ESG risks at least five years ahead. Read on to learn about how Sustainalytics' Material Risk Engagement program promotes and protects long-term value by engaging with high-risk companies on financially-material ESG issues. (A North American Snapshot)
ESG Investors Consider Socioeconomic Impacts of COVID-19 in the Construction Industry
The construction industry can have a reputation for workforce insensitivity and is highly vulnerable to economic and social variabilities. The ESG Impacts of COVID-19 drive companies to adapt to significant challenges related to the demand for construction services. This construction sector research snapshot highlights relevant social issues that corporations face due to ripple effects from the pandemic using Sustainalytics’ ESG Risk Ratings and Controversies Research.
Using Systems Thinking to Avoid ESG Investing Blind Spots
For investors looking to enhance ESG risk management and the long-term impact of sustainability efforts, a systemic approach can help identify interventions that will most effectively mitigate the risk of negative outcomes or divert the chain of events towards a more sustainable trajectory. Typically, this involves moving from single-issue or company-specific tactics to progressively integrate system-level considerations in ESG strategies. Targeting systemic change through active ownership is one way to acknowledge and start unravelling the dynamic web of global challenges.
What Climate Litigation Means for the Oil & Gas Industry
As the global economy looks towards recovery after being impacted by the pandemic, the oil and gas industry faces a growing wave of shareholder activism and climate litigation due to a heightened focus on an accelerated transition as an indirect impact of the pandemic – painting an increasingly bleak picture for those within the industry.
UNICEF Collaborates with Sustainalytics to Highlight Children’s Rights Issues for Investors
While child labor remains a serious problem across industries and countries, it is only one part of the overall issues pertaining to children’s rights; companies and investors should recognize the scope and relevance of this topic.
The Real Price of Food
Today, October 16, is World Food Day, a campaign created in 1981 to raise awareness of hunger and poverty. With an estimated nine percent of the global population reported as undernourished in 2019, hunger and poverty remain a reality for millions of people with the situation being exacerbated by the COVID-19 pandemic.[1],[2]
Untangling the Complex Threads of Modern Slavery
October 7 is World Cotton Day–an annual event created in 2019 after four cotton-producing countries (Benin, Burkina Faso, Chad and Mali) applied to the UN for special recognition of the crop. Cotton has much to celebrate–it is the primary source of livelihoods and revenue for up to a billion people. That said, the positive benefits do not extend to everyone in the value chain, as significant human rights challenges have persisted in many countries. Change, however, may be upon us. Cotton could be set to face major dislocations driven by responses to human rights violations, with significant implications for investors.
CII Conference Reflections: Emerging Social Issues to Watch for in 2020
Following the Council of Institutional Investors Conference, we highlight two emerging social issues that were top of mind for active investors, Cyberthreats and Human Capital & the Future of Work, and discuss how partnering on engagement can drive long-term value.
Pre-engagement study on labour rights in food supply chains
Labour rights issues in food supply chains are crucial matters to investors, both in terms of compliance with international human rights norms and national legislation, and from the material point of view of securing future supplies. With this background, GES, in collaboration with AP7, The Seventh Swedish National Pension Fund, conducted a pre-study to provide input for the development of a new engagement initiative.
Combatting Child Labour: Investor expectations and corporate good practice
GES has engaged the cocoa industry for many years to increase its effort in tackling the issue of child labour. As a part of its long-term engagement, GES published its second public report on the issue, including investor expectations and a corporate benchmark of leading cocoa and chocolate companies.