Sustainalytics: what do they do and offer?

Sustainability and ESG ratings

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Written by Support team
Updated over a week ago

Sustainalytics is a global provider of ESG (Environmental, Social and corporate Governance) research and ratings, offering ESG services to investors, asset managers, and other stakeholders. These services include company ESG ratings, industry assessments, and customs reports.

Methodology

The integration of greenhouse gas (GHG) emissions and other climate-related criteria is a key element of Sustainability Analytics' ESG scoring methodology. By analysing a company's GHG emissions, climate-related policies and strategies, and their ability to adapt to and mitigate climate change risks, Sustainalytics assesses the company's climate impact and the impact of climate change on the company.

Sustainalytics' also includes in its assessments physical risks (e.g. floods and droughts) and transition risks (e.g. regulatory changes and the energy transition) associated with climate change.

GHG emissions and other climate-related criteria play a prominent role in Sustainalytics' rating methodology.

Sustainalytics uses a scale of 0-100 to assess a company's ESG risk. The ratings are divided into five categories: negligible (0-10), low (11-20), medium (21-40), high (41-60), and severe (61-100). In addition, Sustainalytics compares the company's performance on climate-related issues to their peers and to industry standards.

ESG scoring and rating products

Sustainalytics offers several ESG rating products that help investors, and other stakeholders, evaluate the sustainability performance of companies and other entities. These products include Company ESG Risk Ratings, Company ESG Scorecards, Industry/Country/Portfolio ESG Risk Carbon Risk Ratings, Carbon Performance Metrics, Carbon Disclosure Scorecards, and Carbon Research Reports. These products help investors and companies assess and manage their carbon emissions and climate-related risks.

For example, ESG Globes assesses a company's ESG risks and opportunities based on more than 10,000 ESG indicators and 200 industry standards. The end result is a visual representation of the company's ESG performance. The rating is based on a scale of 1 to 5, with five globes representing the best ESG performance and one globe representing the worst.

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