Shanghai skyline | China's Burgeoning Green Bond Market

China’s Burgeoning Green Bond Market: Developments, Characteristics, and Outlook

Insights on China's growing green bond market, including recent developments, key characteristics, and expectations for the world's second largest market.

oil and gas ESG risk

The ESG Risks of National Oil Companies Taking Over Fossil Fuel Production from International Oil Majors

As growing pressure to cut GHG emissions is causing Western oil majors to sell their high-carbon assets, it is expected that National Oil Companies (NOCs) will pick up some of the production. For investors holding an interest in or considering investing in NOCs or sovereign debt, it is worth assessing how fossil fuel production shifts will impact their portfolio’s alignment with climate ambitions and ESG values.

What Happens When Companies are Receptive to Investor Feedback on ESG?

When companies are receptive to investor feedback, there are clear real-world impacts and positive changes. Such engagement outcomes vary and are directly tied to the company and its company-specific exposure to material ESG issues.

Maximum Impact: How Bond Impact Reporting Can Improve Corporate Decision Making

When companies measure and report the environmental and social impacts of their operations, they can demonstrate to investors large and small that their green and social bonds are reliable investments for maximum impact. Then investors can optimize their portfolios for impact as they do for risk and reward and companies can optimize their efforts to improve.

Measuring What Matters: Initiatives for Climate Related Impact and Disclosure - hot orange in the sky

Measuring What Matters: Initiatives for Banks' Climate-Related Impact and Disclosure

To help financial institutions examining the climate impact of their portfolios, we’ve compiled a list of the initiatives and organizations offering guidance on the collection, measurement, and disclosure of climate-related financial data.

Read our most-popular content for corporations in 2021

Our Most Read Content on Corporate ESG in 2021

Find out what businesses are reading with our round-up of Sustainalytics' most popular content in 2021! Clearly, sustainable finance is a hot topic, as well as social impact reporting as businesses work to transition to more sustainable practices.

biodiversity and ESG stewardship

3 Reasons to Skill Up and Scale Up ESG Stewardship in 2022

As our clients and the industry at large focus on proactively mitigating risk and capitalizing on this evolving landscape, stewardship will be a key lever for savvy investors—particularly those facing external pressure to divest. Here are the ESG themes we see influencing stewardship priorities this year.

What You Don’t Know, Can Hurt You: Getting to the Bottom of Supply Chain Risk

What You Don’t Know Can Hurt You: Getting to the Bottom of Supply Chain Risk

To address supply chain risk, business leaders must consider an increasingly broad range of factors in procurement, including environmental, social and governance (ESG) impacts. Investors, customers, and regulators are applying substantial pressure on companies to reduce risks like labor disruptions, workforce health and safety incidents, human rights issues, and shortages of natural resources.

5 Sustainability Themes to Expect in 2022

As we enter 2022, it struck me that VUCA--a concept that originated in the mid-1980s at the U.S. Army War College to describe the volatility, uncertainty, complexity, and ambiguity of the world after the Cold War—is still a useful framework to think of where we are now.

human rights engagement

Human Rights Due Diligence – An Essential Step for Corporate Social Sustainability

Corporates seeking to be socially sustainable must be able to comply with existing and upcoming legislation, mitigate reputational risks, and meet the evolving expectations of their stakeholders.

Climate Action for Investors

For Investors with Ambitions to Lead on Climate Action Post COP26

In the weeks following COP26, investors in the UK and worldwide face a myriad of upcoming climate-related regulations heading towards the implementation phase. In addition, major global coalitions such as the Glasgow Financial Alliance for Net Zero have sprung up to attempt to accelerate decarbonization via targeted investment.

esg risk

A Closer Look at Product Governance ESG Risk Management

In 68% of our engagements, product governance is a significant material ESG issue, but it is our experience that most companies underestimate the materiality of this risk to investors. For some industries, product governance represents on average more than 20% of ESG risk exposure, as identified within our ESG Risk Rating framework.

Read on to explore why banks are embracing sustainable finance

Sustainable Finance and Banks: Reduced Risk, Increased Opportunity

Banks will play a key role in the green transition and those that commit to sustainable banking may gain an advantage over competitors, among other benefits. Indeed, banks are uniquely positioned to participate in and benefit from the transition to a green economy.

cop26 trending themes for investors

COP 26: A Spotlight on Emerging Climate Action Themes for Investors

Reactions to the COP26 Conference and the resulting Glasgow Climate Pact have predictably run the gamut from claims of greenwashing to the celebration of progress in the fight against climate change. Ultimately, any judgement on COP26 may be premature, as the success of the conference will best be measured in time by the extent to which commitments made are put into motion. While we wait to see the concrete actions that materialize, the past two weeks have underscored the importance of several themes that will garner increasing attention and should be considered by sustainable investors.

oil refinery GHG

The Impact and Cost of Air Pollution: U.S. Petroleum Refineries

Investors can examine to what extent petroleum refiners manage their Non-GHG Air Emissions and assess the quality of a company's programs to reduce air pollutants. For instance, examining all the petroleum refiners assessed by Sustainalytics, we observe that only 3% have a strong program to manage non-greenhouse gas emissions.

Green tinted stock market graph, sustainable finance

Simplifying Sustainable Finance – Explaining Green Bonds, Green Loans, Sustainability-Linked Loans and Bonds and More

Explaining the differences between some of the most common sustainable finance instruments, from green bonds and loans to ESG-linked instruments such as sustainability-linked loans.

EU Action Plan SFDR

Momentum Around Principal Adverse Impact Data Remains Strong Despite SFDR Delays

Despite the shifting timelines, we observe that the market momentum around PAIs is not diminishing, quite the contrary. Investors in the scope of the regulation are using the fourth quarter of this year to get acquainted with PAI data and set up their systems. Most investors we speak with want to be prepared in time to be able to monitor PAIs throughout 2022 and adjust their portfolios to boost their PAIs (or rather limit the downside, as these are adverse impact indicators). This means that PAIs may significantly impact stock selection and portfolio construction by fund managers keen to have ‘good’ PAI scores.

energy crisis

What ESG Risks Should Investors Consider During the Energy Crisis?

As world leaders prepare to meet in Glasgow for COP26 to discuss accelerating climate action towards the goals of the Paris Agreement, an emerging energy crisis persists around the world.

SFDR EU taxonomy

SFDR and EU Taxonomy Product Disclosure Rules Finally Released

The publication of these rules marks the end of a prolonged period of uncertainty in the market around final rules and timelines - assuming the RTS will be adopted as-is in a Delegated Act, which turns these rules into regulation. There are several noteworthy aspects to these rules, which we address from our perspective in this article.

biodiversity species

Biodiversity: A Crisis Equaling, Possibly Exceeding, Climate Change

According to the UN’s Convention on Biological Diversity the main drivers of biodiversity loss are habitat loss and degradation, climate change, pollution, over-exploitation, and invasive species. Habitat loss is directly linked to the conversion of natural ecosystems to agricultural lands and unsustainable use of water resources.