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Sustainalytics Reporter | July 2015

Issue 26 - July 2015


Global Access: Your Online Gateway to Sustainalytics

Global Access - Sustainalytics' new ESG and Corporate Governance research portal

In August, Sustainalytics will officially launch its new integrated client interface called Global Access. Over the past year, we have been working to improve our solutions to better support our clients’ investment research and decision-making processes. Offering one-stop access to Sustainalytics’ research, ratings, screening tools and analytics, Global Access promises to help clients be more efficient and effective while working within the Sustainalytics’ environment.

To learn more about Global Access or to request a demo please contact us

 


Analysts' Insights

E.ON's Shuffle of ESG Exposure and Stewardship Accountability
by Reginald-Michel Koizumi and Stefan Klemm

Reginald-Michel Koizumi, Associate Analyst, UtilitiesStefan Klemm, Associate Analyst, UtilitiesE.ON’s planned spin-off of its conventional power assets and its focus on renewables bodes well for the company’s ESG profile. However, the company’s strategy could be viewed as a mere quick fix response to Germany’s energy transition and the broader transformation occurring within the sector, and raises questions about responsible asset stewardship.  

Read "E.ON's ESG Shuffle..."

Endocrine Disrupting Chemicals: When Industry and Societal Interests Diverge
by Iulia Maria Anescu

Iulia Maria Anescu, Analyst, Chemicals Sector

Leaked documents reveal that the EU’s initiative to regulate endocrine disrupting chemicals (EDCs) was delayed until 2016 due to intense industry lobbying. While hailed as a victory by the chemicals industry, critics lamented the EU’s inability to uphold its mandate and protect the well-being of its citizens. This article attempts to evaluate the ESG impacts of EDCs and address the potential implications of such a ban on industry players.

Read "Endocrine Disrupting Chemicals..."

Antibiotic Resistance: Are pharmaceutical companies doing enough?
by Natalia Selivanova

Natalia Selivanova, Analyst, Pharmaceuticals Sector

The rate of antibiotic resistance continues to increase, but pharmaceutical companies’ development of medicines to treat infectious diseases is not keeping pace. The widespread impact of global health crises on human capital and the global economy has the attention of universal owners, who are in a position to engage with governments and companies to create financial incentives for investing in antibiotic R&D.

Read "Antibiotic Resistance..."


Product Spotlight

Corporate Governance Insights and Reports

Corporate Governance Issues

Sustainalytics’ new Corporate Governance Research products are designed to help investors tie a company’s corporate governance structures and practices to its ability to execute on its long-term business strategy. Different from most proxy research specifically driven by AGM voting, Sustainalytics puts an investment risk lens on its analysis and monitors companies’ corporate governance performance throughout the year. When corporate governance incidents matter, we offer investors an analyst view and outlook.

Our corporate governance research and ratings are meant to signal and explain corporate governance risks and opportunities across 50+ indicators, framing six key issue areas including: Board Management Quality & Integrity, Board Structure, Ownership & Shareholder Rights, Executive Remuneration, Audit & Financial Reporting and Stakeholder Governance.

To learn more about our Corporate Governance Research, click here or contact us

Coming soon... Sustainalytics' Carbon Solutions

Sustainalytics is preparing to introduce a suite of Carbon Solutions in August, which will include Carbon Intensity Data for 10,000 companies, Carbon Portfolio Analytics (measures the carbon intensity of investors' portfolios), High-Impact Fossil Fuel Research (identifies companies involved in the most carbon-intense fossil fuels), and Stranded Carbon Assets Research (identifies companies facing a higher risk of asset stranding). 

If you have questions about Sustainalytics' Carbon Solutions or any of our other products or services, please contact us.


Sustainalytics' Perspective

New Sector Reports

Insurance: Shedding Light on New Industry Challenges

Sector Report - Insurance: Shedding Light on New Industry Challenges

In our latest sector report Insurance – Shedding Light on New Industry Challenges, we examine the trends impacting the industry and the ESG investment opportunities and risks of 149 public and private insurance companies. Based on our research, responsible finance, financial product governance and business ethics are the most material ESG issues for the sector. We also found large discrepancies in insurers' strategies to manage climate-driven risks and niche opportunities, including catastrophe bonds. To download the executive summary, click here.

On Thursday, July 23, at 10:00 EDT/15:00 GMT/16:00 CEST Sustainalytics will host a webinar to present the findings from this report. To register, click here.

Precious Metals: Sustainability in a Rocky Environment 

Sector Report - Precious Metals: Stability in a Rocky Environment

Sustainalytics’ recent sector report, Precious Metals: Sustainability in a rocky environment, assessed through a sustainability lens the investment risks and opportunities of 80 public companies in the precious metals industry. Community relations and health and safety are identified as the key ESG issues challenging the industry's ability to fully leverage opportunities and manage risks. To download the executive summary, click here.

Incident and Controversy Assessments

Incident and Controversy Assessments

This month, Sustainalytics’ Incidents Team assessed the implications of the growing bribery allegations against Nike, in relation to the larger FIFA corruption scandal. The team also looked into the Indian government’s concerns over the quality of Nestlé’s Maggi noodles, which have been banned in the country. Finally, the team assessed the multiple allegations brought against Glencore’s operations in Colombia.

Read “Incidents and controversy assessment..."


Inside Sustainalytics

Corporate Access Trip: Key Learnings from India

Asia Insight Report Cover - India

Sustainalytics recently hosted its second annual Corporate Access Trip, a unique ESG research initiative offered only by Sustainalytics. This year, we facilitated investor access to Indian corporates in an effort to enhance understanding of the on-the-ground realities of operating in India. We learned that both local and foreign companies are preparing for stricter regulations around air and water pollution, and greater transparency requirements related to non-financial company information. Many of the companies we visited also noted bribery and corruption, which is still prevalent in some parts of the country, as a major barrier to doing business in India. These insights, and other key takeaways from the trip, will be covered in more detail in our upcoming Asia Insight report ESG Implications for Investing in a “Modi”fied India to be published this fall.

The Corporate Access Trip spanned six rigorous days, with stops in Mumbai, Calcutta and Delhi. The itinerary included eight meetings with top management, plant workers and public policy advocates, and five site visits covering agribusiness, energy, utilities, IT, banking and real estate. Led by research manager Hardik Sanjay Shah, the European and Asian asset managers who participated provided favourable feedback on the trip and found the overall experience to be extremely valuable.

Are you interested in participating in a future Corporate Access Trip? Tell us which markets are most important to you by completing this short survey.

Sustainalytics Named Best Green Bond Research Firm

2015 GlobalCapital Bond Award Winner

The ninth annual GlobalCapital Bond Awards were held in London on May 21. Voted on by market participants, the awards honour individuals and teams on both the borrowing and investment banking sides of the market. Sustainalytics was named the Best Green Bond Research Firm. To see the full list of 2015 Bond Award winners click here

Nasdaq Stockholm Launches Sustainable Bonds List with Support from Sustainalytics

Sustainability Bond ServicesThe Nasdaq Stockholm Sustainable Bonds List, developed in cooperation with Sustainalytics, provides investors with a comprehensive view of sustainable investment alternatives at Nasdaq Stockholm. The list was initiated with 12 bonds with a total nominal value of over 5.4 bn SEK. New bonds will be added to the list on an ongoing basis. As part of our Sustainability Bond Services, we helped develop the criteria for the Nasdaq Stockholm Sustainable Bonds List. To learn more, click here.

 Maclean’s Top 50 Socially Responsible Corporations

Maclean's Top 50 Socially Responsible Companies in CanadaFor the seventh year, Sustainalytics partnered with Maclean’s, Canada’s weekly current affairs magazine, to identify the “Top 50 Socially Responsible Corporations.” Sustainalytics developed the list to highlight Canada’s corporate social responsibility leaders, who are displaying noteworthy and innovative sustainability initiatives in their operations, supply chains and products and services. Published in the June 15th issue of Maclean’s and the July issue of L’actualité, the list ranks selected companies across 10 different industries. To see which companies made this year’s list, click here.

IN THIS ISSUE

Analysts' Insights

Product Spotlight

Sustainalytics' Perspective

Inside Sustainalytics

Research at Work

Sustainalytics in the Media


RESEARCH AT WORK

Sustainalytics and Responsible Sourcing Network Collaborate to Assess Conflict Mineral Disclosure
Sustainalytics recently collaborated with the Responsible Sourcing Network to measure company performance on major human rights risks related to conflict minerals. The report, Mining the Disclosures: An Investor Guide to Conflict Mineral Reporting, found mixed results in corporate disclosure of mineral sourcing in the supply chain. You can download the report here

We also participated in a webinar with the Responsible Sourcing Network and hosted by Schulte Roth & Zabel LLP discussing meeting investor and stakeholder expectations under the SEC’s Conflict Minerals Rule. You can access the webinar materials here.

Sustainalytics Selected to Support Development of the Access to Nutrition Index
The Access to Nutrition Foundation has chosen Sustainalytics to help develop its index. Sustainalytics will gather and analyse information and data on 22 food and beverage companies as well as engage with the companies to obtain more information, which will result in the scoring and ranking of the companies for the index. The Access to Nutrition Index is scheduled for release later this year. Stay tuned for more information!


 

Have your say - Publication Survey

We want to hear from you.

What topics would you like to see Sustainalytics cover in 2015? Click the button below to take our short, one-question survey

TAKE THE SURVEY

IN THE MEDIA

The Big Picture - Financial Times

Sustainability Measurement: Index looks to connect investors - Financial Times

Opportunities grow in green bonds  - Advisor.ca

Why tying CEO pay to sustainability still isn't a slam dunk - GreenBiz


ABOUT SUSTAINALYTICS

Sustainalytics | Your responsible investment partner

Sustainalytics supports investors around the world with the development and implementation of responsible investment strategies. The firm partners with institutional investors, pension plans, and asset managers that integrate environmental, social and governance information and assessments into their investment decisions.

Headquartered in Amsterdam, Sustainalytics has offices in Boston, Bucharest, Frankfurt, London, New York, Paris, Singapore, Timisoara and Toronto, and representatives in Bogotá, Brussels and Washington, D.C. The firm has over 200 staff members, including more than 120 analysts with varied multidisciplinary expertise and thorough understanding of more than 40 industries.