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Q&A | ESG-Linked Compensation: Getting Started, Common Metrics, and the Role of Banks

How do companies initiate the process of tying executive compensation to ESG metrics? The second part of our Q&A with Sustainalytics' resident expert.

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How Europe’s Energy Crisis Impacts the Clean Energy Transition

Europe is facing two major crises—an energy crisis, worsened by Russian energy supply disruptions and the challenge of tackling climate change. Renewables have the potential to accelerate EU's energy independence and reduce emissions. Still, there is also an urgent need to secure an adequate energy supply, especially in the coming winter months when heating demand increases. In the short-term, many EU countries are turning to other fossil fuel producers in the Middle East OPEC+ and the US, as well as domestic coal production. For firms deciding which energy projects to invest in, they face a complex question: are energy supply disruptions advancing the EU’s transition to a lower-carbon economy and its energy independence or furthering the continent’s dependence on fossil fuels?

Correlation of Business Ethics and Corporate Culture - 5 Lessons from the Banking Industry

To protect a company’s reputation and economic position, its employees play an essential part in organisational risk mitigation strategy by demonstrating consideration for systemic business risk, taking accountability, and being willing to escalate concerns. Companies with a strong, ethical corporate culture have much to gain—improved employee performance, morale, and retention, and in the long run, bolstering the bottom line.

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Q&A | How Companies Are Using Sustainability-Linked Compensation to Advance ESG Goals

Can sustainability-linked compensation advance ESG goals? The first part of our Q&A with Sustainalytics' resident expert tackles this and a few other interesting questions.

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Governance in Brief – July 7, 2022

Microsoft and Cisco Systems have come under shareholder pressure to bring their tax disclosure in line with the Global Reporting Initiative’s GRI 207 tax transparency standard, which requires granular country-by-country disclosure on non-U.S. profits and tax payments, as well as other financial data relating to tax risk appetite

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Sustainable Investment Calculations Under MiFID II and SFDR Remain Perplexing for ESG Investors

The various interpretations of the sustainable investment definition introduced by the SFDR and leveraged in MiFID II leave many market participants unsettled, having to decide between approaches that have different benefits and limitations in the short to medium term.

controversial weapons ESG

The Governance of Autonomous Weapons: What Investors Should Know

The ethical implications of lethal autonomous weapons systems (LAWS), often referred to by their dramatic moniker ‘killer robots’, have long been a topic of interest. Until recently, debates about LAWS were relegated as hypothetical, with the technology assumed to be under development and out of reach. Such assumptions may be due for reevaluation, and while a firm conclusion is yet to be drawn, it is worthwhile presenting them to the ESG investment community.

governance in brief

Governance in Brief – June 30, 2022

Glencore subsidiary admits to bribery in UK trial Glencore Energy, a subsidiary of Glencore PLC, has pleaded guilty to all counts of bribery brought against it by UK authorities. The company admitted to paying bribes amounting to USD 28 million for access to unduly favourable oil deals in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea and South Sudan. Sentencing is expected at the beginning of November.

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The Road to Our 1000th SPO: How We Got Here and What’s Next in Sustainable Finance

As a global leader in second-party opinions (SPOs) of sustainable bonds and loans, Sustainalytics maintains a unique vantage point to observe how the market has changed. Here are some noteworthy developments.

governance in brief

Governance in Brief – June 23, 2022

he European Parliament and Council of the European Union have reached an agreement to impose gender quotas for the executive and non-executive boards of EU-listed companies.

What's Happening in Sustainable Finance: Whether War Could Spur Adoption of Renewables, Thoughts on Just Adaptation, and More

In this month’s round-up of the sustainable finance market, we discuss how geopolitical conflicts could spur the adoption of renewables, considerations for a just adaptation, and much more.

eBook | Future-Proofing Supply Chains 2022 | Sustainalytics

ESG Due Diligence in Supply Chains: Is Your Company Ready for the German Supply Chain Act?

Germany’s Act on Corporate Due Diligence in Supply Chains, set to come into effect in January 2023. This blog offers an overview on what’s included in the legislation, and how your company needs to prepare.

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.

View our infographic, Mapping Pay to Performance: ESG-Linked Compensation Around the World

Mapping Pay to Performance: ESG-Linked Compensation Around the World

In this infographic, we examine the state of ESG pay-links, including their adoption in long-term incentives and short-term incentives, in five regions: Europe, the United States and Canada, Asia-Pacific, the Middle East and Africa, and Latin America and the Caribbean.

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A Sustainable Finance Insider’s Perspective at the ICMA Annual Conference

Insights from the ICMA's 54th Annual General Meeting and Conference held in June 2022, in Vienna, with 900 delegates from 40 countries.

governance in brief

Governance in Brief – June 16, 2022

he European Parliament and Council of the European Union have reached an agreement to impose gender quotas for the executive and non-executive boards of EU-listed companies.

Should Leadership Compensation Be Tied To ESG Metrics? Here’s Why It Makes Sense

Explaining the relationship between leadership compensation and corporate strategy, whether it makes sense for incentives to be tied to ESG-related goals, and why more companies are adopting this practice.

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.

governance in brief

Governance in Brief – June 9, 2022

Exxon Mobil will face a lawsuit over having allegedly misled investors and consumers about the climate change risks posed by its business, following a rejection of its motion for dismissal on anti-SLAPP grounds.

Listen to the latest episode of the Sustainalytics Podcast | Aligning Executive Action to Strategy With Sustainability-Linked Compensation

The Sustainalytics Podcast | Addressing Material ESG Issues: Practical Insights From our Expert Webinar Panel

Sharing insights from our webinar “Addressing Key Corporate ESG Issues: Lessons From Industries With High ESG Risk”. In clips from the live session, our sector analysts discuss the importance of measuring and managing material ESG issues such as environmental impacts, community relations and occupational health and safety.