A country’s long-term prosperity impacts both its ability to service its debt as well as companies’ ability to flourish.
Sustainalytics’ Country Risk Ratings assesses countries’ prosperity by considering its access to – and management of – natural, human and institutional wealth, which corresponds to our assessment of Environmental, Social and Governance factors in our company ESG ratings.
Investors can use this research to supplement traditional sovereign bond- and macro-economic analyses. The alignment between country and company assessments also simplify reporting in fixed income portfolios.
In-Depth Qualitative Research
Country research includes qualitative assessments of country events, e.g. civil conflicts
Valuation of Country Wealth
Assessments provide insight into the health of a country’s economy and welfare
Integrated ESG Analysis
Wealth and ESG is incorporated into a risk metric to understand the risks to a country’s long-term prosperity and economic development
|Country||Sovereign Region||Risk Score (/100)||Risk Category|
|1||Norway||Europe and Central Asia||9.48||Negligible|
|2||Luxembourg||Europe and Central Asia||10.98||Low|
|3||Switzerland||Europe and Central Asia||11.08||Low|
|4||Australia||East Asia and Pacific||11.36||Low|
|5||Iceland||Europe and Central Asia||11.67||Low|
|6||New Zealand||East Asia and Pacific||11.79||Low|
|7||Sweden||Europe and Central Asia||12.03||Low|
|8||Denmark||Europe and Central Asia||12.39||Low|
|9||Singapore||East Asia and Pacific||12.87||Low|
|10||Finland||Europe and Central Asia||13.05||Low|
|11||Germany||Europe and Central Asia||13.57||Low|
|13||Netherlands||Europe and Central Asia||14.05||Low|
|14||Japan||East Asia and Pacific||14.31||Low|
|15||Austria||Europe and Central Asia||14.41||Low|
|16||Qatar||Middle East and North Africa||14.56||Low|
|17||Ireland||Europe and Central Asia||14.69||Low|
|18||Hong Kong||East Asia and Pacific||14.70||Low|
|19||Brunei Darussalam||East Asia and Pacific||15.41||Low|
|20||United States||North America||15.71||Low|
Country Screening & Sanctions Research
Subscribers to the Country Risk Ratings also receive our Country Screening & Sanctions Research. This research enables investors to ensure compliance by screening countries on international treaties as well as UN, US and EU sanctions.
How it Works
1. Sustainalytics utilizes wealth data provided by the World Bank and groups a country’s assets (or National Wealth) into three categories:
Natural & Produced Capital
e.g. infrastructure, energy independence and natural resources
e.g. access to water and sanitation, mean years of schooling and life expectancy
e.g. rule of law, corruption and political liberties
2. A country’s ability to utilize and manage its wealth in an effective and sustainable manner is determined by:
e.g. civil conflicts, natural disasters
Investor Use Cases
ESG Integration/Sovereign Analysis
Supplement credit risk analysis by focusing on a country’s wealth and management of wealth through an ESG lens, which may not be explicitly captured in credit rating
Combine ESG, wealth and economic indicators for a more holistic assessment of country risk
Anticipate Emerging Risks
The Country Risk Ratings are forward-looking, enabling you to anticipate and manage emerging risks with regular assessments of country events.
Portfolio Analysis & Reporting
Combine data from Sustainalytics’ ESG Risk Ratings on corporate bonds and Country Risk Ratings on sovereign bonds for risk assessment and reporting of fixed income portfolios
Countries are categorized across five risk levels: Negligible, Low, Medium, High, Severe.
Risk Scores are broken down by different types of capital: Natural and Produced, Human, and Institutional.
See how Country Risk Ratings evolve over time.
See Country Risk Ratings broken down by indicators.
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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.
25+ Years ESG Expertise
350+ ESG research analysts across our global offices.
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As recognized by Environmental Finance and the Climate Bonds Initiative.
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