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
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
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.
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.
See company’s global exposure to ESG incidents.
Understand how incidents evolved over time by reading past articles and news stories.
Stay up to date with our Special Alerts shared shortly after exceptional, high-profile incidents are reported.
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Related Insights and Resources
EU Taxonomy Developments and the EU’s Renewed Sustainable Finance Strategy
On July 6th, the European Commission published its Strategy for Financing the Transition to a Sustainable Economy, the successor of the EU’s Sustainable Finance Action Plan, which launched in 2018. The strategy focuses on transforming the financial system and financing transition plans, building on the 2018 Action Plan, which centered on developing the EU Taxonomy, putting in place disclosure regimes, and developing tools for the market to develop sustainable investment solutions and prevent greenwashing.
Sustainalytics Weighs in on EU Taxonomy’s State of Flux
On May 7th, the European Commission published draft rules on how corporates and financial institutions should report on their alignment with the EU Taxonomy. The draft rules are laid out in a very technical document and not an easy read. This might explain why certain changes with significant impact on timelines and scope of the EU Taxonomy Regulation have flown under the radar of media and investors. Some of the impacts even escaped the attention of financial market participants responding to the consultation on the rules.
New Draft Disclosure Rules Change Timelines and Scope of EU Taxonomy
In recent months, a lot has been said and written about the EU Taxonomy, the green classification system of economic activities that aims to drive capital flows to sustainable investments supporting the EU’s policy goals on climate and the environment. Political, corporate, and civil society lobbying reached its peak when the EU published draft rules last December, which deviated substantially from expert recommendations. However, the latest draft delegated act with rules on Taxonomy reporting published by the European Commission on May 7th has received far less attention even though some of the proposed changes affect the practical implementation timelines as well as the scope and ambition of the regulation.