Country Research & Ratings

Identify ESG risks that affect countries' prosperity

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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. 

Key Benefits

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In-Depth Qualitative Research

Country research includes qualitative assessments of country events, e.g. civil conflicts

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Valuation of Country Wealth

Assessments provide insight into the health of a country’s economy and welfare

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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

Top 20 Countries

The top 20 most sustainable countries based on Sustainalytics' Country Risk Ratings are:

 CountrySovereign RegionRisk Score (/100)Risk Category
1NorwayEurope and Central Asia9.48Negligible
2LuxembourgEurope and Central Asia10.98Low
3SwitzerlandEurope and Central Asia11.08Low
4AustraliaEast Asia and Pacific11.36Low
5IcelandEurope and Central Asia11.67Low
6New ZealandEast Asia and Pacific11.79Low
7SwedenEurope and Central Asia12.03Low
8DenmarkEurope and Central Asia12.39Low
9SingaporeEast Asia and Pacific12.87Low
10FinlandEurope and Central Asia13.05Low
11GermanyEurope and Central Asia13.57Low
12CanadaNorth America13.73Low
13NetherlandsEurope and Central Asia14.05Low
14JapanEast Asia and Pacific14.31Low
15AustriaEurope and Central Asia14.41Low
16QatarMiddle East and North Africa14.56Low
17IrelandEurope and Central Asia14.69Low
18Hong KongEast Asia and Pacific14.70Low
19Brunei DarussalamEast Asia and Pacific15.41Low
20United StatesNorth America15.71Low

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:

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Natural & Produced Capital

e.g. infrastructure, energy independence and natural resources

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Human Capital

e.g. access to water and sanitation, mean years of schooling and life expectancy

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Institutional Capital

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:

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ESG Performance

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ESG Trends

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ESG Events

e.g. civil conflicts, natural disasters

Investor Use Cases

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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

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Macro-economic Analysis 

Combine ESG, wealth and economic indicators for a more holistic assessment of country risk

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Anticipate Emerging Risks 

The Country Risk Ratings are forward-looking, enabling you to anticipate and manage emerging risks with regular assessments of country events.

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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

Report Insights

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.

Report showcasing risk ratings

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.

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