Global Standards Engagement

Ensure portfolio companies comply with global norms and standard

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The EU Action Plan and similar initiatives are placing a renewed emphasis on the importance of ensuring portfolio companies comply with internationally recognized norms and standards, such as the United Nations’ Global Compact Principles, ILO Conventions and the OECD Guidelines for Multinationals.

Developed as an engagement overlap to Sustainalytics’ Global Standards Screening, Global Standards Engagement is an incident-driven service where we engage alongside clients with companies that severely or systematically violate the Global Compact. We encourage companies to resolve the incident in a way that would enhance its future ESG performance and risk management to avoid similar controversies in the future.

Key Features and Benefits

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Demonstrate your commitment as a responsible owner

Responsible investing goes beyond stock selection. Today, institutional investors are expected to take steps to being active and engaged shareholders that view corporate accountability as a path to achieving greater long-term value.

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Manage reputational risks

Let us help you manage reputational risks by applying a compliance-focused approach to engaging with companies that are non-complaint with international norms.

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Collaborate and pool resources

Determine your level of involvement, for example, by taking an active part in engagement dialogues, conference calls and teaming up with other investors.

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Track progress with live, fully-transparent updates

Access the latest updates on our fully-transparent web-based platform where you can find the most recent updates, like email correspondence, meeting minutes and more.

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Drive corporate change

Engagement contributes to positive changes in corporate behavior tied to ESG commitments, which can create added long-term value when these changes are financially material.

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Align your portfolio to global norms and standards

We help ensure portfolio companies comply with internationally recognized norms and standards, which is fastbecoming a requirement with new regulations, such as the EU Action Plan and UK Stewardship Code.

How does Global Standards Engagement Work?

Systematic Monitoring of Companies for Incidents

We monitor more than 700,000 news items on a daily basis to identify potential incidents involving a universe of over 20,000 issuers across the globe.

Research and Assessment

Once an incident has been flagged, our global research teams starts gathering facts and assesses the case against a set of international conventions and guidelines for the environment, human rights and business ethics. International standards include the United Nation’s Global Compact, the OECD Guidelines for Multinationals, UN Guiding Principles, human rights conventions, labor rights conventions, environmental conventions and weapons-related conventions.

Engagement Dialogue

Sustainalytics consistently engages with all watchlist and non-compliant companies alleged of violating international norms to establish what actually occurred. Findings from the initial meetings are summarized in dialogue sections of case reports and an engagement change objective is developed in line with industry best practices.

Company Report and Engagement Strategy

A clear action plan with measurable outcomes and milestones is drawn up to achieve the desired outcomes. Ongoing dialogue is arranged to further investigate the case, which is presented along with a full company profile in the online platform.

Reporting and Case Closure

Sustainalytics measures engagement by both the company’s response and progress. Rigorous criteria are employed to assess whether to close and resolve a case.

Delivery Options

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Global Access

Sustainalytics’ user-friendly investor interface provides full insight into a company’s engagement profile, overall ratings and dialogue. It also includes engagement manager commentary on the case, next steps and upcoming meetings.

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Data Services

Basic data points can be delivered as a standard portfolio report in Excel or as a data feed.

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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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30 Years of ESG Expertise

500+ ESG research analysts across our global offices.

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A Leading SPO Provider

As recognized by Environmental Finance and the Climate Bonds Initiative.

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Related Solutions

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