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.
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
25+ Years ESG Expertise
350+ ESG research analysts across our global offices.
Largest Second-Party Opinion Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
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.
Les points communs entre la réglementation française et européenne en matière d’ISR
Quand les nouvelles réglementations sur les investissements durables et responsables (ISR) furent annoncées avec le « EU Action Plan », les institutionnels français n'ont pas cillé. Depuis l'accord de Paris en 2015, de nombreuses nouvelles obligations réglementaires liées à la publication d’information et à l’analyse ESG ont influencé les stratégies d’investissements responsables des institutionnels français. Le règlement SFDR qui est entré en vigueur le 10 mars dernier vient s’ajouter au cadre réglementaire local en matière de reporting.
ESG Disclosure and Performance in Southeast Asia
Strategically located at the centre of Asia Pacific, with a young population of more than 675 million across 11 countries, Southeast Asia is an economic block with one of the world’s fastest GDP growth rate. In recent years, the region has been attracting the attention of global investors. At the same time, in the context of responsible investing moving from a niche activity to the mainstream, research on the environmental, social, and governance (ESG) performance of Southeast Asia companies is limited. In this article, we have a deeper look at the ESG disclosure and performance of major Southeast Asia countries, focusing on the ASEAN-6 countries (Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines).
Deepwater Plays Against Rising Risks: The U.S. Gulf of Mexico
As onshore resources became harder to locate over the past decades, offshore exploration and production have grown into a global industrial activity. The prospect of finding hydrocarbons has led some companies to explore deeper waters in some regions.
Screen countries for compliance to international treaties and agreements as well as UN, US and EU sanctions.
Take a coherent and consistent approach to assessing financially material ESG risks.