Corporate Governance Research & Ratings

Uncover corporate governance risks and opportunities

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Strong oversight and accountability are crucial to the management of material ESG issues as well as a company’s ability to execute its long-term business strategy. Sustainalytics flagged corporate governance concerns at both Volkswagen and Fiat months before the respective emissions scandals broke.  

Sustainalytics’ Corporate Governance Research & Ratings enable investors to better assess portfolio companies’ corporate governance structures, practices and behaviors. These qualities have long been embraced by investors as potential sources of investment risk and, more recently, opportunity.  

Our Corporate Governance Research & Ratings also form the baseline assessment for our ESG Risk Ratings.

Latest Newsletters

governance in brief

Governance in Brief – October 21, 2021

October 21, 2021  |  Newsletter
governance in brief

Governance in Brief – October 14, 2021

October 14, 2021  |  Newsletter
governance in brief

Governance in Brief – October 07, 2021

October 7, 2021  |  Newsletter

Key Features & Benefits

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Better understand companies’ corporate governance systems and practices and the potential risks and opportunities they pose to long-term value creation.

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Leverage insights from our independent analyses to inform your investment decisions as well as proxy voting and engagement activities. 

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Benchmark companies’ corporate governance performance on a variety of metrics to identify strengths as well as potential red flags. 

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Speak directly to our in-house team of subject matter experts.

Coverage

~4,200 COMPANIES 

Global coverage of major indexes

Corporate Governance Reports

Data-driven contextual reports that provide corporate governance ratings and information on a global universe of approximately 4,200 companies. We assess a company’s corporate governance structures, practices and behaviors along six pillars that are deemed crucial for good governance: Board Integrity & Quality, Board Structure, Remuneration, Shareholder Rights, Financial Reporting and Stakeholder Governance. Select reports also include an analyst view and outlook for the company.

Corporate governance Report

Governance in Brief Newsletter

Sign up to our weekly Governance in Brief newsletter for an analysis of the latest weekly developments. To view previous issues here.

Corporate Governance Pillars

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Board & Management Quality and Integrity 

Do the board’s experience, track record and behavior sufficiently demonstrate its ability to provide strategic leadership and oversight? 

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Board Structure

Do the organization and structure of the board provide sufficient oversight, representation and accountability to shareholders?

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Ownership and Shareholder Rights

Do the constitution of the company and its ownership structures respect the right of outside shareholders relative to the board, management, and major holders?

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Remuneration

Do the company’s remuneration policies and practices provide appropriate incentives for management to build value?

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Audit & Financial Reporting 

Are the company’s financial reports reliable and subject to appropriate oversight?

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Stakeholder Governance

Does the company’s management of extra financial risks and broader stakeholder relationships raise concerns regarding its governance of long-term value creation?

Delivery Options

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Global Access

Access our research through our user-friendly investor interface with easy to use screening and reporting tools. You can also access onscreen & PDF reports

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Data Services Regular data feed (SFTP/FTP) or API

Access our research through an internal or a third-party system of your choice: Bloomberg, Factset and Markit

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Why Sustainalytics?

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A Single Market Standard

Consistent approach to ESG assessments across the investment spectrum.

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Award-Winning Research and Data

Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.

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End-to-End ESG Solutions

ESG products and services that serve the entire investment value chain.

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25+ Years ESG Expertise

350+ ESG research analysts across our global offices.

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Largest Second-Party Opinion Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

Related Insights and Resources

governance in brief

Governance in Brief – October 21, 2021

The U.S. SEC has announced that it is reopening comments on a proposed rule that would claw back executive compensation in cases of financial restatement due to “material noncompliance.” The rule was initially proposed in 2015, as mandated by the Dodd-Frank Act, but has yet to be finalized. The clawback would apply to incentive-based compensation awarded to current and former executives during the three fiscal years preceding the restatement “regardless of whether the misstatement was due to fraud, errors, or any other factor.” The recovered amount would equal the excess compensation relative to the amount to which executives would have been entitled based on the restated financial statements. The clawback provisions would apply to compensation that is granted, earned or vested upon the attainment of a financial reporting measure, including stock price and total shareholder return. Additionally, under SEC’s proposal, stock exchanges would have to establish listing standards requiring public companies to adopt and comply with clawback policies. Issuers would be subject to delisting in case they fail to disclose their policies and comply with their provisions. The SEC is seeking public input on the proposed rule for a period of 30 days.

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Governance in Brief – October 14, 2021

A federal jury has ordered Tesla to pay USD 137 million to a contract worker over claims of workplace racism. Plaintiff Owen Diaz accused Tesla of creating a hostile work environment and failing to address racial abuse despite repeated complaints.

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Governance in Brief – October 07, 2021

At its 2021 AGM, Frasers Group shareholders approved a GBP 100 million compensation scheme for incoming CEO Michael Murray, amid backlash from independent investors. While the remuneration policy was supported by nearly 85% of votes cast, there was around 49% dissent among independent shareholders.

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Governance in Brief – September 30, 2021

The U.S. Department of Justice has opened an investigation into Zoom Video Communications’ deal to buy American software company Five9, citing potential national security risks posed by foreign participation. In July, Zoom had announced an all-stock deal to acquire Five9 for USD 14.7 billion, contingent on Federal Communications Commission (“FCC”) approval.

Related Products

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ESG Voting Policy Overlay

Receive voting recommendations based on sustainability principles, ESG research and engagement signals. 

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Thematic Engagement

Our Thematic Engagement program includes several corporate governance related engagement themes. 

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ESG Risk Ratings

Take a coherent and consistent approach to assessing financially material ESG risks.

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