Sustainalytics is a global company that supports hundreds of the world’s foremost investors who incorporate Environmental, Social, and Governance (ESG) and corporate governance insights into their investment processes. They conduct research and ratings on ESG and corporate governance.
Sustainalytics conducts ratings called ESG Risk Ratings to help investors identify and understand financially material ESG risks at the security and portfolio level. The Ratings are based on a two-dimensional materiality framework that measures a company’s exposure to industry-specific material risks and how well a company is managing those risks. It is comprised of three central building blocks: corporate governance, material ESG issues, and idiosyncratic issues. Sustainalytics research has two pillars: standard research, where they research and rate the brands based on their policies and programs; and controversy research, where they look at news and third-party reports in searching the incidents in which the companies were involved.
|# and type of entity||266 Brands, Retailers, Suppliers|
|# of metrics disclosed||80|
|# of data points gathered per entity||80|
|Year of first public disclosure||2012|
|Data collection method||Secondary desk research|
|Data verification method||On-Site 3rd Party Verification|
|Themes evaluated||Child labor, Employment policy and promotion, Employment security, Forced labor, Freedom of association / collective bargaining / industrial relations, Labor administration and inspection, Maternity protection, Non-discrimination/rights protection for: migrant workers, Occupational health and safety, Purchasing practices, Regulatory framework and enforcement, Transparency, Tripartite consultation, Vocational guidance and training, Wages, Working time|
|Vehicle for disclosure|
|Cost to access||10K-200K EUR per year/ entity depending on the type of client, the product suit, coverage and intended use of the products|
|Intended users of the Disclosure||Governments, Investors|