Sustainalytics’ New Research Report Offers Insight into ESG Risks Facing 10 Sectors

Report also profiles how 10 companies manage ESG risks


TORONTO, Feb. 15, 2018 (GLOBE NEWSWIRE) -- Sustainalytics, a leading global provider of ESG and corporate governance research, ratings and analytics, today released a new thematic research report titled, 10 for 2018: ESG Risks on the Horizon. The report examines critical ESG risks facing 10 sectors, which are classified under four broad themes, including:

Water Management
Chile’s copper mining producers are under pressure due to growing risks from water-driven community opposition. Based on analysis of the water and community risk management capabilities of the largest listed copper producers in Chile, Antofagasta is a leader given its focus on mitigating water risk and collaborating with communities on water issues.

Climate Change
The great low carbon transition poses significant challenges for the oil and gas sector, and company performance on greenhouse gas (GHG) risk management varies widely among the world’s 10 largest publicly traded oil majors. Royal Dutch Shell stands out as a top-tier GHG risk management performer, and is the first major oil and gas company to set carbon reduction targets.

Stakeholder Governance
Select apparel firms are moving their production facilities to Africa due to wage increases and mounting scrutiny over working conditions in Asia. Sustainalytics assesses 117 firms on their supply chain standards and management practices given they are crucial to sustainably expand into new regions where local labor issues are sensitive. Based on 10 companies from the sample, H&M demonstrates leadership toward improving supply chain management and transparency.

Consumer Protection
Financial services firms could experience increasing costs related to General Data Protection Regulation (GDPR), which takes effect in May. Evaluating 10 large European financial companies, Sustainalytics notes that AXA SA’s sophisticated approach to data privacy and security management make it among the best positioned to meet tightening data protection regulations and manage associated regulatory risks.

“Sustainalytics’ research analysts identified major ESG issues impacting their sectors, and their insight led us to concentrate on ESG risks for 2018,” said Doug Morrow, director of Thematic Research at Sustainalytics. “Based on our analysis, we believe many of these issues will reach a tipping point and potentially pose a threat to shareholder value in the year ahead. Overall, the story selections are meant to provoke new thinking about risk and sector attractiveness, particularly over the long run.”

To present the findings from its new report, Sustainalytics will host three regional webinars on Thursday, February 22, 2018. To register for the webinar and access the report, click here.

About Sustainalytics
Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm supporting investors around the world with the development and implementation of responsible investment strategies. For over 25 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. With 13 offices globally, Sustainalytics has more than 350 staff members, including over 170 analysts with varied multidisciplinary expertise across more than 40 sectors. Through the IRRI Survey, investors selected Sustainalytics as the best independent responsible investment research firm for three consecutive years, 2012 through 2014, and in 2015 and 2016, Sustainalytics was named among the top three firms for both ESG and corporate governance research. For more information, visit www.sustainalytics.com.

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