Women's day blog

Is the COVID-19 Pandemic Threatening Progress on Gender Equity?

The COVID-19 pandemic has disrupted lives and livelihoods on an unprecedented scale. Despite massive government spending, the pandemic resulted in the global economy shrinking by 3.5% in 2020.[i] However, the financial burden of this pandemic has not been borne evenly.

governance in brief

Governance in Brief – Mar 04, 2021

Petrobras will hold an EGM to vote on a proposal by the Brazilian federal government, which controls 50.5% of voting rights, to remove CEO Roberto Castello Branco from the board and replace him in this capacity with former military general Joaquim Silva e Luna.

economic moat webinar

Enhancing Risk-Return Profile by Combining ESG Risk and Economic Moats

Hear from Sustainalytics' Methodology and Portfolio Research specialist, Liam Zerter, as he talks us through the key findings from Sustainalytics' recent Combining ESG Risk and Economic Moat report, which shows that economic moat and ESG risk can be combined to create investment strategies that generate value both in terms of returns and portfolio risks.

governance in brief

Governance in Brief – Feb 25, 2021

The Carlyle Group has secured a USD 4.1 billion credit line that it describes as “the largest ESG-linked private equity credit facility in the US…and the first to focus exclusively on advancing board diversity.” The facility’s price of debt will be dependent on the firm achieving its goal of 30% board diversity across its portfolio companies within two years of ownership.

Impact reporting

Five Commonly Asked Questions About Sustainalytics’ Approach to Impact

We launched our new Impact Metrics product to support investors’ growing need for more robust data that can be used to demonstrate how ESG-focused strategies can deliver real-world social and environmental outcomes. Since the launch, I have connected with many enthusiastic institutional investors eager to make sense of the rapidly evolving world of impact, excited to dive into impact data, and cautiously optimistic about supporting their clients’ Sustainable Development Goal (SDG) and impact needs.

governance in brief

Governance in Brief – Feb 18, 2021

Regulatory inquiry calls out governance failures at Crown Resorts Four Crown Resorts directors, including the CEO, have resigned after a report commissioned by New South Wales (“NSW”) authorities found “serious corporate failures” at the firm and deemed it unsuitable to hold a license for its Barangaroo casino.

10 for 2021

Sustainalytics' 10 for 2021 On-Demand Video

Listen in as the Sustainalytics 10 for 2021 research team walks you through the report, highlighting the key subindustries, from agrochemicals, agriculture and aquaculture to packaged food, food retail and restaurants,

EU Taxonomy Update

EU Sustainable Finance Disclosure Regulation: An Update

Update - 3 March, 2021: To help investors comply with the new requirements of the SFDR, Sustainalytics launched the PAI Data Solution that maps our research to the 60 indicators defined by the regulator. This new dataset will enable investors to consider the PAIs in their investment decisions as well as supporting disclosure requirements. Visit our website to learn how we can help with you SFDR compliance journey.

governance in brief

Governance in Brief – Feb 11, 2021

Investors push for leadership and strategy shift at Exxon More than 135 investors, with USD 2.2 trillion in assets, have teamed up to push Exxon to make leadership changes and to increase its focus on clean energy transition. The investors, acting under the “Coalition United for a Responsible Exxon” banner, expressed concern over the company’s current strategy of basing its upstream investments on an assumption of future price and demand increases for oil and gas.

10 for 2021 report

10 for 2021: Investing in the Circular Economy

This report aims to support investors interested in gauging environmental, social and governance (ESG) risks and opportunities in the global food value chain. We survey key subindustries – from agrochemicals, agriculture and aquaculture to packaged food, food retail and restaurants – in search of solutions that may support the principles of the circular economy (CE). These principles include minimizing waste and pollution, extending the use-phase of products and ecosystem regeneration. Some of the key insights found in the report are:

governance in brief

Governance in Brief – Feb 04, 2021

Apollo Global Management to overhaul corporate governance On January 25, US private equity firm Apollo Global Management announced far-reaching changes to its corporate governance. The firm will separate the Chairman and CEO roles held by co-founder Leon Black, who will stay on as Chairman while co-founder Marc Rowan takes over as CEO.

926 Engagement Meetings in Emerging Markets

Lessons Learned from 926 Engagement Meetings in Emerging Markets

When Sustainalytics (GES[1]) initiated the Emerging Markets (EM) Engagement program as a pilot project in 2009, the scale, scope and impact were undetermined factors. Based on the successful execution of the program methodology in the African and Middle Eastern regions during the pilot stage, the full program launched in 2010 to cover all major emerging markets. After the project close in July 2020, the program accounts for 926 meetings with companies in emerging markets.

10 for 21 still

The Food Value Chain: ESG Risks and Solutions

This years edition of Sustainalytics’ 10 for series takes a deep dive into some of the most pressing environmental, social and governance (ESG) issues affecting companies that contribute to the global food value chain.

governance in brief

Governance in Brief – Jan 28, 2021

Home Depot and Omnicom Group are both facing shareholder resolutions calling for an independent third-party investigation into the link between their social media advertising and “violations of civil or human rights.”

Coal banner still

A Political Pivot for Climate Change and the American Coal Industry

As the Biden administration moves into the White House this week, the world is waiting to see if a promising focus on climate change along with a Democratic Congress will present plausible opportunities to cut carbon emissions. While the outgoing administration backed initiatives supporting coal energy[1], it doesn’t appear to have slowed industry decline.

governance in brief

Governance in Brief – Jan 14, 2021

Starting this year, Apple will introduce an ESG modifier to its short-term incentive (STI) plan that may increase or decrease executives’ annual bonuses by up to 10%. The performance measures and the threshold, target, and maximum opportunity levels under the STI will remain unchanged.

governance in brief

Governance in Brief – Jan 07, 2021

Following confusion, NYSE delists three Chinese companies The New York Stock Exchange (“NYSE”) has announced the January 11 delisting of the American depositary receipts (“ADRs”) of three Chinese telecommunications companies. The concerned companies are China Mobile, China Telecom, and China Unicom Hong Kong, all controlled by the Chinese state and also listed on the Hong Kong Stock Exchange.

natural gas still

Is Natural Gas a Cleaner Energy Solution?

While Oil and Gas (O&G) operations are responsible for roughly 15 percent of global energy-related GHG emissions, some energy companies have pledged the role of natural gas (NG) as a transitional fuel. At the same time, NG energy use is increasing globally, and shale-gas extraction is booming at an unprecedented rate. One factor that is often overlooked is the methane emissions across the NG value chain.

Human Rights Accountability Takes Center Stage in 2020

December 10th is Human Rights Day and, as we approach the end of the year, recognition of this day offers a suitable moment to reflect on the extraordinary events that unfolded in 2020.

Combining ESG Risk and Economic Moat

In this report, we look at the potential synergies between Sustainalytics’ ESG Risk Ratings and Morningstar’s Economic Moat Rating. As a part of our research, we constructed a back-testable investment strategy and portfolio by segmenting stocks with low ESG risk and a wide moat. While both metrics worked independently, they performed exceptionally well in combination.