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Controversies in Biodiversity and Community Relations: A Holistic View of Their Interconnection

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.

Two large yellow dump trucks transporting minerals at a lithium open mine.

The Raw Materials Crunch: Industry Risks Due to Physical Scarcity, Supply Concentration and Intense Demand

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.

human rights

Applying Business and Human Rights International Standards to Investor Due Diligence

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.

automotive production in Ukraine

ESG Implications of Russia’s Invasion of Ukraine on the Automotive Industry

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.

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.

aviation in Ukraine ESG

ESG Implications of Russia’s Invasion of Ukraine on the Aviation and Defense Sectors

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.

Rubles Russia ESG

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?

blockchain supply chain

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.

grain processing plant in a field

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.

cocoa farming

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.

oil and gas ESG risk

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.

human rights engagement

Human Rights Due Diligence – An Essential Step for Corporate Social Sustainability

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.

European Court of Human Rights

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.

diverse hands

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.

Responsible Investing

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)

(Possibly) a little less conversation and (definitely) a little more action, please

This blog originally appeared on GES International’s website and has been republished following Sustainaltyics’ acquisition of the company on 9 January 2019. See the press release for more information.

construction industry protocol

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.

ESG interconnected

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.

climate litigation Netherlands

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.