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.
Key Features & Benefits
Better understand companies’ corporate governance systems and practices and the potential risks and opportunities they pose to long-term value creation.
Leverage insights from our independent analyses to inform your investment decisions as well as proxy voting and engagement activities.
Benchmark companies’ corporate governance performance on a variety of metrics to identify strengths as well as potential red flags.
Speak directly to our in-house team of subject matter experts.
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 Pillars
Board & Management Quality and Integrity
Do the board’s experience, track record and behavior sufficiently demonstrate its ability to provide strategic leadership and oversight?
Do the organization and structure of the board provide sufficient oversight, representation and accountability to shareholders?
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?
Do the company’s remuneration policies and practices provide appropriate incentives for management to build value?
Audit & Financial Reporting
Are the company’s financial reports reliable and subject to appropriate oversight?
Does the company’s management of extra financial risks and broader stakeholder relationships raise concerns regarding its governance of long-term value creation?
Access our research through our user-friendly investor interface with easy to use screening and reporting tools. You can also access onscreen & PDF reports
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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Consistent approach to ESG assessments across the investment spectrum.
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Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
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ESG products and services that serve the entire investment value chain.
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800+ ESG research analysts across our global offices.
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Related Insights and Resources
Governance in Brief – November 24, 2022
Costco to set new emissions targets following activist demands Activist investment firm Green Century Capital Management claims that Costco Wholesale Corp has pledged to set new Scope 3 climate reduction targets in 2023. At Costco’s January 2022 AGM, 70% of votes supported a proposal from Green Century for the company to include emissions from producers and distributors in its net-zero greenhouse gas emissions targets.
Governance in Brief – November 17, 2022
Renault to potentially spin off EV line and partner with Geely French carmaker Renault Group has announced plans to split its activities into five separate businesses: “Ampere” (electrical vehicles), “Power” (combustion- and hybrid-engine assets), “Alpine” (sports cars), “Mobilize” (financial services), and “The Future is Neutral” (recycling activities). The company is considering listing Ampere on Euronext Paris in 2023 and has said that it will welcome external investors while maintaining a “strong majority.”
Governance in Brief – November 10, 2022
Petrobras to pay massive third quarter dividend Petrobras has approved the payment of around BRL 43.68 billion (USD 8.4 billion) in Q3 dividends. Of the total dividend, around BRL 20 billion (USD 3.9 billion) will go to the Brazilian federal government, Petrobras’ controlling shareholder.
Governance in Brief – November 3, 2022
SEC adopts new rule on executive compensation clawbacks The U.S. SEC has adopted new rules requiring publicly traded companies to recover incentive-based executive compensation if that pay was awarded based on a misstated financial performance measure. The SEC had originally proposed a clawback rule in 2015, but it remained dormant until 2021.
Receive voting recommendations based on sustainability principles, ESG research and engagement signals.
Our Thematic Engagement program includes several corporate governance related engagement themes.