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Unraveling the variety of risks associated with company ESG issues has never been more important in the context of our current market environment. Material ESG issues are the central building block of Sustainalytics’ ESG Risk Ratings. Underpinning our 20 material ESG issues are more than 250 ESG indicators, which enable investors to understand how exposed companies are to specific issues and how well companies are managing these issues.

Spotlight on Sustainalytics’ 20 Material ESG Issues

Over the next several months, Sustainalytics will highlight the importance of a specific material ESG issue in the context of current market conditions, provide rich analysis on each issue and focus on companies that perform well.

Explore All Material ESG Issues

Carbon - Products and Services

10

Carbon – Products and Services

Carbon – Products and Services – evaluates a company’s management of the energy efficiency and/or greenhouse gas emissions of its services and products during the use phase.

Product Governance

17

Product Governance

Product Governance – looks at how companies manage their responsibilities vis-à-vis clients (quality and/or safety of their products and services). This issue puts an emphasis on quality management systems, marketing practices, fair billing and post-sales responsibility.

Access to basic services

6

Access to Basic Services

Access to Basic Services – focuses on the management of access to essential products or service such as healthcare services and products to disadvantaged communities or groups.

Human Capital

12

Human Capital

Human Capital – assesses the management of human resources. It includes the management of risks related to scarcity of skilled labor through retention and recruitment programs and includes career development measures such as training programs. Additionally, it includes labor relations issues, such as the management of freedom of association and non-discrimination, as well as working hours and minimum wages.

Resilience

18

Resilience

Resilience – focuses on the financial stability and the management of related risks in the financial services industry, with a concentration on compliance with capital requirements.