Stockholm (NordSIP) – Sustainalytics announced the launch of its new Global Standards Screening product and its Global Standards Engagement service on June 4. The two new products are the result of the acquisition of GES International and reflect the incorporation of that company’s capabilities into Sustainalytics toolkit.
Sustainalytics’s two new products will help investors ensure their portfolios are aligned with norms-based global standards.
Sustainalytics’ Global Standards Screening allows investors to screen over 20,000 companies to see if they are involved in serious incidents. It evaluates whether companies behaviours is consistent with the UN’s Global Compact Principles (GCPs) on human rights, labour, business ethics and the environment as well with the the OECD’s Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. The product also allows Sustainalytics’s clients to assess the impact of those incidents on stakeholders and the environment based on internationally accepted norms and standards. According to data from industry sources cited by Sustainalytics, “US$4.7 trillion in responsible investment assets are managed according to and aligned with norms-based screening processes”.
“We are delighted to launch our enhanced norms-based screening product, which builds on the long and successful track records of both our organizations,” said Remco Slim, Sustainalytics’ Manager of Product Strategy and Development. “By focusing on a broad set of internationally-recognized global standards, Sustainalytics’ Global Standards Screening product can help investors to ensure their holdings align with global norms.”
Research from Sustainalytics’ screening tool is the foundation of its Global Standards Engagement service, which it uses to engage with companies that are either not complying or at risk of not comply with the UN GCPs on behalf of investors. GES International was a highly respected global owner advocate, providing of engagement, screening and fiduciary voting services to institutional investors founded by Magnus Furugård, headquartered in Stockholm and with offices in Zurich, Copenhagen, London and Zielona Gora. It was acquired by Sustainability in January 2019.
“We believe GES’ proven approach to constructive issuer engagement will significantly enhance our clients’ abilities to manage ESG risk, alongside improving companies’ ESG performance,” said Sustainalytics’ CEO, Michael Jantzi, on the occasion of the acquisition. “The strengths and capabilities that our two firms bring to the global investment community comes at a critical time with engagement on ESG issues becoming a more important tool for investors in executing their ESG strategies.”