From bribery and corruption to workplace discrimination and environmental incidents, corporate scandals can have significant financial repercussions ranging from legal penalties to consumer boycotts. In addition, these incidents damage the reputation of both the companies themselves and their shareholders.
Leveraging smart technologies to monitor more than 700,000 news stories daily, Sustainalytics’ Controversies Research identifies companies involved in ESG-related incidents. These incidents are assessed through a framework that considers the severity of incidents, the corporation’s accountability and whether they form part of a pattern of corporate misconduct. Investors use Controversies Research to support investment decisions, including screening and engagement, and to manage reputational risks
Latest Insights
EU Action Planning: ESMA Questions and MiFID Data begs Further SFDR Clarity for Investors
Applying Business and Human Rights International Standards to Investor Due Diligence
Key Benefits
Read forward-looking assessments of how controversies are likely to evolve over the next 12 to 24 months
Manage your portfolio’s ESG exposure with an in-depth assessments of companies’ exposure to ESG controversies.
Identify issues to address during your corporate due diligence processes.
Read forward-looking assessment of how controversies are likely to evolve over the next 12 to 24 months
Speak directly to our analysts and sector specialists who understand the relevant industries and can provide more context
Controversies Research Report
Controversy Rating
When incidents are found in the news, they are tagged and grouped together before being rated on a scale from 1 to 5. This provides investors with a simple and straightforward way of assessing the severity of a company’s exposure to controversies.
Outlook
The Controversy Rating is accompanied by a positive, neutral or negative outlook that reflects the analyst’s assessment of the likeliness of a possible ratings change in the next 12 to 24 months.
Geographic Spread
See company’s global exposure to ESG incidents.
Historical Development
Understand how incidents evolved over time by reading past articles and news stories.
Special Alerts
Stay up to date with our Special Alerts shared shortly after exceptional, high-profile incidents are reported.
Coverage
20,000+ Issuers
Global coverage of all major indexes and large private companies
Delivery Options
Global Access
Access our research through our user-friendly investor interface with easy to use screening and reporting tools
Data Services
Access our research via data feeds (SFTP,FTP or API) or a third-party system of your choice: Bloomberg, Factset and Markit
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.
ESG Risk Ratings
Take a coherent and consistent approach to assessing financially material ESG risks.
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Global Standards Screening
Identify companies in breach of the UN Global Compact to support your norms-based screening strategy.
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Material Risk Engagement
Engage on the most material ESG risks identified by the ESG Risk Ratings.
Learn MoreMorningstar® Sustainability LeadersSM Index Family
Companies that proactively manage ESG issues that are most likely to affect financial results.
Morningstar® Sustainability Dividend Yield FocusSM Index Family
High Income generating equity investments focused on total returns with reduced ESG Risk.
Morningstar® Societal Development IndexSM
Developed and emerging market companies that align with one or more of the UN SDGs.
Morningstar® Minority Empowerment IndexSM
Companies that are committed to racial and ethnic diversity as demonstrated by relevant programs and policies related to diversity, community development etc.
Morningstar® Global Market SustainabilitySM Index Family
Best-in-class equity index that features reduced ESG risk profile with low to moderate tracking error.
Related Insights and Resources
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While perhaps not a widely considered link between the defense industry and climate change, several Eurosatory conference sessions addressed how climate change can intensify security risks and threats.
EU Action Planning: ESMA Questions and MiFID Data begs Further SFDR Clarity for Investors
Regulators asking questions about topics central to the EU Action Plan show that more work needs to happen to make this ambitious, first-of-a-kind sustainable finance legislation workable for the market and supervisors and more useful for end investors.
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.
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.