The EU Action Plan and similar initiatives are placing a renewed emphasis on the importance of ensuring portfolio companies comply with internationally recognized norms and standards, such as the United Nations’ Global Compact Principles, ILO Conventions and the OECD Guidelines for Multinationals.
Developed as an engagement overlap to Sustainalytics’ Global Standards Screening, Global Standards Engagement is an incident-driven service where we engage alongside clients with companies that severely or systematically violate the Global Compact. We encourage companies to resolve the incident in a way that would enhance its future ESG performance and risk management to avoid similar controversies in the future.
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Key Features and Benefits
Demonstrate your commitment as a responsible owner
Responsible investing goes beyond stock selection. Today, institutional investors are expected to take steps to being active and engaged shareholders that view corporate accountability as a path to achieving greater long-term value.
Manage reputational risks
Let us help you manage reputational risks by applying a compliance-focused approach to engaging with companies that are non-complaint with international norms.
Collaborate and pool resources
Determine your level of involvement, for example, by taking an active part in engagement dialogues, conference calls and teaming up with other investors.
Track progress with live, fully-transparent updates
Access the latest updates on our fully-transparent web-based platform where you can find the most recent updates, like email correspondence, meeting minutes and more.
Drive corporate change
Engagement contributes to positive changes in corporate behavior tied to ESG commitments, which can create added long-term value when these changes are financially material.
Align your portfolio to global norms and standards
We help ensure portfolio companies comply with internationally recognized norms and standards, which is fastbecoming a requirement with new regulations, such as the EU Action Plan and UK Stewardship Code.
How does Global Standards Engagement Work?
Systematic Monitoring of Companies for Incidents
We monitor more than 700,000 news items on a daily basis to identify potential incidents involving a universe of over 20,000 issuers across the globe.
Research and Assessment
Once an incident has been flagged, our global research teams starts gathering facts and assesses the case against a set of international conventions and guidelines for the environment, human rights and business ethics. International standards include the United Nation’s Global Compact, the OECD Guidelines for Multinationals, UN Guiding Principles, human rights conventions, labor rights conventions, environmental conventions and weapons-related conventions.
Engagement Dialogue
Sustainalytics consistently engages with all watchlist and non-compliant companies alleged of violating international norms to establish what actually occurred. Findings from the initial meetings are summarized in dialogue sections of case reports and an engagement change objective is developed in line with industry best practices.
Company Report and Engagement Strategy
A clear action plan with measurable outcomes and milestones is drawn up to achieve the desired outcomes. Ongoing dialogue is arranged to further investigate the case, which is presented along with a full company profile in the online platform.
Reporting and Case Closure
Sustainalytics measures engagement by both the company’s response and progress. Rigorous criteria are employed to assess whether to close and resolve a case.
Delivery Options
Global Access
Sustainalytics’ user-friendly investor interface provides full insight into a company’s engagement profile, overall ratings and dialogue. It also includes engagement manager commentary on the case, next steps and upcoming meetings.
Data Services
Basic data points can be delivered as a standard portfolio report in Excel or as a data feed.
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
800+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
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Global Greenwashing Regulations: How the World Is Cracking Down on Misleading Sustainability Claims
Amid fears of greenwashing claims and evolving reporting standards, sustainable investment assets have dropped as much as 51 percent. In this rapidly changing environment, ESG stewardship is one of the most effective ways to integrate genuine sustainability principles into investment management.
ESG Stewardship: A Powerful Tool to Mitigate Greenwashing Risks
Amid fears of greenwashing claims and evolving reporting standards, sustainable investment assets have dropped as much as 51 percent. In this rapidly changing environment, ESG stewardship is one of the most effective ways to integrate genuine sustainability principles into investment management.
Related Solutions
Global Standards Screening
Identify companies in breach of the UN Global Compact to support your norms-based screening strategy.
Material Risk Engagement
Engage on the most material ESG risks identified by the ESG Risk Ratings.
Thematic Engagement
Engage on the most challenging ESG issues, from climate change to human capital.