ESG Research and Resource Center

In this year’s edition of our 10 for series, we put an environmental, social and governance (ESG) lens on 10 investment themes that may offer investors an opportunity to create a positive social and environmental impact through the equity market. The trends we identify are driven by corporate initiatives to scale new technologies, improve social conditions, conserve ecosystems and mitigate climate change.

Review the second-party opinions for some of the green, social and sustainability bonds mentioned in our 500th SPO post. Learn more about the issuers, and the socially and environmentally focused projects and initiatives their bonds funded.

As the largest second-party opinion provider, Sustainalytics works with hundreds of the world’s leading issuers and investment banks to help them bring credible sustainability bonds and loans to market.

Climate bonds, loans or debt instruments are used to finance or re-finance projects that address climate change and are in line with achieving the goals of the Paris Climate Agreement. Such projects include wind farms, solar plants, sustainable buildings, etc. and can be found in a multitude of sectors including shipping, agriculture, energy or forestry amongst others.

Climate risk management is one of the overarching challenges facing members of society, including investors. Investors are striving to understand and integrate the financial impact of climate-related risks and opportunities in investment decisions.

This thematic engagement is aimed at encouraging companies to define meaningful SDG strategies that align with their business plans. It aims to influence them to address their negative impacts and seek out opportunities to produce positive outcomes in line with the 2030 SDG agenda, while contributing to a more stable long-term operating environment for themselves.

An SPO provides potential investors with assurance that the use of proceeds for the bond or loan, as set out in the framework, are aligned to market practices.

Sustainalytics’ Carbon Risk Rating assesses the degree to which company value is at risk, driven by the transition to a low-carbon economy. Specifically, the Carbon Risk Rating measures a company’s unmanaged exposure to carbon risk.

The Country Risk Ratings measure the risk to a country’s long-term prosperity and economic development by assessing how sustainably it is managing its wealth. It can be used to support country assessments and help investors anticipate and manage emerging risks with an analysis of events happening in a country

Sustainalytics’ Controversial Weapons Radar enables investors to identify private and public companies involved in weapons that can have a disproportionate and indiscriminate impact on civilian populations, sometimes even years after a conflict has ended.

Sustainalytics‘ Data Services enables investors to integrate our research directly into their internal or third-party systems. It integrates ESG research seamlessly into the system you currently use and know.

This engagement focuses on encouraging companies to improve the quality and economics of recycling practices, to shift strategic focus towards redesign and innovation and to increase the re-usability of products.

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.

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

Sustainalytics’ ESG Risk Ratings are designed to help investors identify and understand financially material ESG risks in their portfolio companies and how those risks might affect performance.

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.

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.

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.

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.

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