Your solution to 100% ESG* rating coverage
An important part of our coverage is private credit issuers
Our Core Knowledge #1
Fundamental ESG* risk research by Certified ESG* research analysts
Our approach to ESG research is fundamental, that means that we study all relevant publications by a company and combines this with fundamental understanding of ESG challenges of different activities and sectors. This makes us well placed to estimate the ESG risks of a company. We publish a 33 pages ESG research report per company with a conclusion highlighting the most important residual risks, a section suggesting how it should be integrated in investment decisions and a list of all the questions we think should be asked to the company in question.
Based on our fundamental ESG research process, we rate up to over 130 separate indicators on the ESG risk mitigating impact, or seen from the other side, what level of ESG risk that remains on that specific point of interest. Based on our understanding of ESG materiality, we make a weighted total ESG risk rating for the company we have researched.
Based on our fundamental ESG research process, we rate up to over 130 separate indicators on the ESG risk mitigating impact, or seen from the other side, what level of ESG risk that remains on that specific point of interest. This data is available as an option for clients with own ESG rating methodology.
In addition to ESG research, we gather PAI data for the companies we research. This includes all the mandatory and the full E and S voluntary lists. This data is available as an option for clients.
In addition to the ESG research, we screen companies for activities, practices and products that investors at times exclude from their investible universe. All the activities in the EU EET file are included, plus a more detailed set of screening criteria in the fossil fuel value chain, for example oil sand, fracking, upstream and down stream activities. This data is available as an option for clients.
Our Core Knowledge #2
EU sustainable regulation implementation advisory and training
In-between the lawyers’ interpretation of EU regulatory texts and the asset managers, we offer practical implementation. Often the input from the lawyers is very theoretical and not very practically oriented. We also bring in the consensus views from Europe on how EU sustainable regulation is implemented in the areas of uncertainty or unclear definitions or requirements from the regulation.
While many still think that EU Sustainable Finance regulation is only about information and reporting, there are some processes that need to be in place to ensure that asset managers actually are delivering on the promises given on websites and in pre-contractual documents. One of these is the ESG risk integration in “investment processes” that practically means in “investment decisions”.
We have realised as specialist on ESG risk identification and assessment that many portfolio managers and analyst are struggling to practically integrate these risks in their investment decisions. We therefore have developed a training to help them. It is a 4 session program with both theoretical and practical case work.
Our Core Knowledge #3
Your own ESG research processes, materiality definitions and software solution (SaaS)
What is NEW at sustainAX?
Now you can search on the companies we have ESG risk researched
Search here the companies we have ESG risk researched. Soon we will indicate ranges for ESG, E, S and G risks and materiality weighting. Stay tuned!
© Copyright SustainAX AB and www.sustainax.com, 2024. Please note that by accessing and using the SustainAX AB website, you are consenting to comply with our Terms of Use and acknowledging the acceptance of any inherent risks. The content provided on this site is available for your non-commercial, non-competitive use, specifically for the purposes of understanding companies’ environmental, social, and governance (ESG) risks. Should you wish to employ our information within a professional capacity, it is incumbent upon you to secure the appropriate licensing rights from us. Be aware that any form of unauthorised data extraction or the systematic electronic harvesting of our content is expressly forbidden.
UPDATE:
Statement of Application
UPDATE 2024 07 22: Since we signed up to the ICMA code of conduct for ESG rating and ESG data products providers, we have been working on aligning to the code.
We have implemented a new policy for ESG ratings and ESG data and communicated how we do in relation to the ICMA code of conduct. We have increased the transparency on our methodology and the historic changes. See details here.
Solutions - What we offer
What are your sustainability needs?
ESG Research
Do you need more ESG* research for your portfolio holdings or do you need help with ESG* integration processes?
Sustainability Reporting
Would you like to improve your sustainability strategy and reporting? Would you like an audit by an independent specialist?
ESG Transparency
Would you like to see that the companies you are introducing to the markets are transparent and publish relevant ESG* information?
We are here to help you with sustainability risks
We help asset managers meet the sustainability expectations of their clients and other stakeholders through access to a large ESG* Research library and advice on ESG* risk integration processes
We help companies meet the sustainability expectations of the investors, employees and other stakeholders through an ESG risk due diligence of the company and advice on improvement
We help investment banks ensure new companies are aligned with investors’ sustainability expectations through analysis of the companies and advice on communication
We have unique experience from financial markets and asset management combined with a certified and multi-year relevant experience in the sustainability risk field
Deep and wide experience from financial markets and asset management since 1994, both from the Nordics and in Continental Europe and mainly with major investment banks
Our approach to ESG* research is based on current standards and quality is ensured through CESGA (EFFAS) certification although we recognise the standards are in motion
The exceptional combination of the two is leading to deeper understanding of how ESG* factors have impact on companies and also how companies have impact on them – double materiality
Recently published ESG* Insights
ESG risk mitigation strategies through engagement, not impact investing, is the quickest way to positive environmental and social impact. Why?
1) Impact assets are still small in a global context, and how large can it grow really?
2) “Profitable” ESG risk mitigation strategies are relevant for most actively managed assets, massive in a global context
If the target is to have powerful and quick positive contribution to environmental and social goals, ESG risk mitigation strategies like engagement is the way to go.
It implies that exclusions is not always the right strategy!
