Elements of Partnership Risk Assessment
Identification of key ESG issues and assessment of corporate reputation
Through comprehensive research process and extensive stakeholder interviews, Sustainalytics identifies key sustainability concerns and assesses the company’s and the industry’s reputation among stakeholders. This information is used to customize an evaluation framework that reflects the social and environmental and governmental issues that are most relevant to stakeholders.
Analysis of all relevant controversies
Sustainalytics analysts assess all controversies in a context-based manner that includes surveying the broader company/industry history and performance. Our controversies analysis monitors a matrix of key areas:
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- Impact:
- How many people were affected?
- How seriously were they affected?
- Degree of Exceptionality:
- Is this type of incident ‘normal’ within the industry?
- Sphere of Influence:
- How much control did the company have to prevent the incident?
- How important is the company globally/nationally/locally?
- Level of Recurrence:
- Have similar incidents occurred in the past?
- Company Response:
- What preventative steps have been taken?
- How transparent has the company been?
- Overall Policies and Management Systems:
- Does the company have relevant policy and management systems in place?
ESG Performance Assessment
Sustainalytics assesses a company’s ESG performance and risk of future controversies by generating and examining:
Sustainability Profiles
- Scoring potential partner companies with other comparable companies on each ESG dimension, category and individual metric
Gap Analysis
- Comparing the performance of potential partners in relation to their competitors
Best Practices
- Identifying gaps between the practices of potential partner companies in relation to industry best practices.
A comprehensive understanding of ESG best practices, international standards and performance areas, linked with an understanding of high stakeholder expectations, can facilitate dialogue and engagement with potential partners and lead to improved performance.
