Impact Metrics

Sustainalytics’ Impact Metrics is a set of company-level metrics that provide a useful measure of impact. Each metric can be used to report on at least one theme in our new Impact Framework and for at least one of the 17 SDGs.

Peer Performance Insights

Sustainalytics´ Peer Performance Insights suite of products provides information about the company’s ESG Risk Rating and its components compared to a select number of industry peers.

Predicted ESG Risk Ratings

Visualize your supply chain, including direct and indirect suppliers, and compare their ESG Risk Ratings all in one place. Comparable company scores will help you evaluate organizations across industries, sectors, and regions.

Human Capital and the Future of Work

The Fourth Industrial Revolution is accelerating. Technological progress, globalization and demographic shifts, will bring structural changes and disruptions to society and labor markets. This engagement supports investors in understanding how companies can proactively manage workforce needs and transitions for a sustainable labor market.

Corporate Impact Report

Sustainalytics’ Corporate Impact Report calculates the social, environmental, and economic impact of a business, focusing on the material issues that are most relevant to its industry and region.

Sustainable Seafood

Engaging with marine fisheries and aquaculture producers, the focus is on managing seafood sustainability risks and opportunities, which in turn contributes to long-term operational continuity and sustainability.

The ESG Risk Rating: Frequently Asked Questions for Companies

ESG Risk Ratings are categorized across five risk levels. Sustainalytics' ESG Risk Ratings span more than 12,000 companies and encompass most major global indices. Have questions about ESG Risk Ratings? Learn more from our FAQ

Responsible Cleantech

While being a vital part of the response to climate change as well as other economic and societal needs, the growing supply of cleantech products also entails environmental and social challenges within the various processes across the value chain. This engagement aims to encourage and enable the cleantech industry to grow in a more responsible manner.

Food Supply Chain

This engagement focuses on addressing risks related to child- and forced labor in the targeted companies’ supply chains, as well as to remediate potential adverse labor rights impacts. Particular focus is placed on the identified high-risk commodities, namely coffee, rice, sugar, tea and tomatoes.

Index Research Services

Sustainalytics‘ works with leading index providers to develop and maintain indexes that track the ESG performance of companies.

Plastics - A Material Issue for Investors

The plastic waste issue is currently one of the fastest growing environmental topics on the political and business agenda. Plastic is a vital product to the global economy; however, the way it is being produced and managed is unsustainable, especially at the use and after‐use phases. The carbon footprint and emissions associated with plastic production along with the issue of the environmental and potential health impacts of plastic waste are a matter of growing concern for investors. In light of the environmental, social and financial challenges, the linear “take, make and dispose” approach cannot continue. The alternative is a circular economy approach, which focuses on maximizing resource value, making resource use more efficient and extending product value during use.

South Africa and ESG Risk

A Case Study On November 1, 2019 Moody’s cut its rating outlook for South Africa from “Baa3 stable” to “Baa3 negative,” putting the country’s bonds on the cusp of junk status after several harbingers of a potential downgrade.[i] Earlier this year, the World Bank and the International Monetary Fund cut their 2019 growth forecasts for South Africa to around 0.8%, while the Institute of International Finance warned that the country’s public debt could grow to 95% of Gross Domestic Product (GDP) by 2024.[ii] The other two big credit rating agencies (CRAs) – Fitch and S&P – downgraded South Africa’s credit rating to sub-investment grade back in 2017, citing a deterioration in the country’s public finances.[iii]

A Case for Impact Investing in Public Equities

As awareness around environmental and social issues has grown, so has the number of investors who deliberately seek to allocate capital to create positive social and environmental impact. Impact investing is as old as the sustainable investment industry, with the bulk of strategies to date having been executed through private equity and debt vehicles. However, as a more diversified pool of investors look to adopt impact investing strategies, fueled by the United Nations’ Sustainable Development Goals (SDGs) and the Paris Climate Agreement, a broader set of asset classes are being considered – here enters public equities.

Sustainable Finance and the EU Taxonomy: Developments from the Trilateral Negotiations

As global leaders meet in Madrid for the COP25 amid mounting concern over the international response to climate change, the EU Taxonomy experienced a setback with the UK and France blocking the plans. The new framework, intended to drive financial flows that will accelerate the shift to a low carbon future, will likely become a global standard affecting investors around the world. If enacted, it could cement the EU’s position as the world’s pace setter on climate legislation.

PFAS Sparks a Wave of Litigation in the U.S. Chemical Industry

In 2019, a wave of litigation related to per- and polyfluoroalkyl substances (PFAS) emerged in the United States, as several states filed lawsuits against PFAS manufacturers, including DuPont, Chemours and 3M. This legal action accompanies increased regulatory scrutiny of this potentially risky class of chemicals. In this article, we will focus on the risks chemical companies face related to PFAS contamination of drinking water in the United States and the ESG risks posed to chemical companies and their investors.

Death and Taxes are the Only Constants - But Not for Everyone

Major global companies such Google, Amazon, Facebook and Apple (known as “GAFA”) have come to dominate not just the tech industry but increasingly global commerce as well. The OECD estimates that companies like these avoid USD 100-240 billion in taxes annually, representing roughly 4-10% of global corporate income tax revenues. Attention paid to corporate taxation has also risen sharply in recent years, with increasingly heated debates on what constitutes “companies paying their fair share.”

Aligning Finance and Sustainability: The Role of the Principles for Responsible Banking

The Principles for Responsible Banking requires banks to take a hard look at their business strategies and their impacts on the environment and society. For this reason, Sustainalytics has endorsed the Principles for Responsible Banking and has committed to working closely with banks as they seek to further incorporate sustainability considerations throughout their operations.

About Green Bond Principles

The green bond market aims to enable and mobilize debt markets to fund projects that contribute to environmental sustainability. Green bonds facilitates capital-raising and investments for new and existing projects which have environmental benefits and can mitigate risks associated with climate change. With over 1,500 green bonds issued in 2018, valued at more than USD 175 billion, the green bond market is growing at a fast pace. It is estimated that by 2019, green bond issuance will surpass USD 210 billion. More on issuing a green bond

Revising Mining Codes: Equality for Nations or Nationalization?

In recent years, an increasing number of nations, particularly in Africa, have been amending their mining codes. Governments likely view these amendments as a way of getting more for their people from their natural resources. But are these amendments slowly leading to the nationalization of the sector in some of these countries and how are the companies reacting?

Cybersecurity: A Pervasive Risk

In 2017, in the wake of the WannaCry ransomware attack, we argued that the event should be seen as a cybersecurity wake up call. Since then, cybersecurity risks have remained a source of uncertainty for most companies, driven by the increasing intensity, both in volume and impact, of cyberattacks. These risks are compounded by the continuous expansion of critical infrastructure (energy grids, utilities, hospitals) to digital platforms and the breadth of sensitive information that is housed in online servers. As a result, the pool of lucrative targets for malicious actors continues to grow. This is reflected in the notable rise in the number cyber insurance claims. According to a study by AIG, 2018 had the same number of cyber insurance claims as the preceding two years combined.[i]