Through industry initiatives, like the PRI, and new stewardship codes and regulatory frameworks, like the EU’s Action Plan, there is a growing need among investors to demonstrate that they take stewardship responsibilities related to ESG issues seriously.
Sustainalytics and its predecessors have 25 years’ experience in the provision of Stewardship Services. Working collaboratively with our asset owner and asset manager clients, we aim to foster a constructive dialogue with portfolio companies. All our engagements are informed by Sustainalytics’ company research, creating a coherent approach to ESG across the investment value chain.
Our Engagement Solutions
Material Risk Engagement
A proactive engagement with companies with the greatest unmanaged financially-material ESG risks.
Incident-driven engagement that identifies companies not in compliance with accepted international conventions, such as the UN Global Compact, OECD Guidelines and other accepted standards.
Proactive engagement services that focus on tackling the most challenging ESG issues, from climate change to child labor.
We believe effective engagement is a constructive process aimed at creating long-term investment value. To achieve this aim, engagement requires:
- Clear engagement objectives that both resolve relevant issues and improve companies’ overall ESG performance
- Constructive relationships built on two-way dialogue
- Clear time frames for engagement results
- Versatility and the use of all available engagement tools, including email communications, calls and meetings with management, conference calls, site visits and proxy voting
- Working on a collaborative basis to leverage the power of ownership influence
Our constantly growing team currently consists of around 30 highly experienced engagement professionals, with extensive market knowledge. Our Engagement Managers are able to leverage Sustainalytics’ in-depth and diverse ESG research, which is supported by close to 300 research analysts and the largest dedicated ESG client servicing team in the industry.
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
Using Systems Thinking to Avoid ESG Investing Blind Spots
For investors looking to enhance ESG risk management and the long-term impact of sustainability efforts, a systemic approach can help identify interventions that will most effectively mitigate the risk of negative outcomes or divert the chain of events towards a more sustainable trajectory. Typically, this involves moving from single-issue or company-specific tactics to progressively integrate system-level considerations in ESG strategies. Targeting systemic change through active ownership is one way to acknowledge and start unravelling the dynamic web of global challenges.
What Climate Litigation Means for the Oil & Gas Industry
As the global economy looks towards recovery after being impacted by the pandemic, the oil and gas industry faces a growing wave of shareholder activism and climate litigation due to a heightened focus on an accelerated transition as an indirect impact of the pandemic – painting an increasingly bleak picture for those within the industry.
Royal Dutch Shell Court Order Shifts Paradigm for Corporate ESG Accountability
On 26 May 2021, the Court of The Hague orders Royal Dutch Shell (RDS) to reduce CO2 emissions to a net 45% by the end of 2030 compared to 2019 through the Group Policy of the Shell Group. The order of a national (Dutch) court demands that a global company (RDS) fulfills its obligations under the Paris Climate Agreement, although RDS was not a party in that agreement, and there is no legal equivalent in The Netherlands. What are the broader consequences of this order, also globally and for other companies and potentially also other jurisdictions?
Banks Embrace Corporate Culture as Change Agent
Corporate culture is not automatically positive, and elements of a company’s culture may provide certain benefits or disadvantages to a firm’s competitiveness. When acknowledged, corporate culture can be used as a tool to drive better business outcomes and manage conduct and compliance risk. Our discussions with companies show that corporate culture can have a dominant effect and influence behaviour over and beyond stated company policies and programs.
Engage on the most material ESG risks identified by the ESG Risk Ratings.
Engage with companies that breach international norms and standards as identified by our Global Standards Screening research.