UK Stewardship Code 2020 - Stewardship Report
Morningstar Sustainalytics has maintained its status as a signatory of the UK Stewardship Code 2020 (the Code) per the Financial Reporting Council (FRC). Download the report to review how Sustainalytics' commitment to high stewardship standards meets the service provider principles set under the Financial Reporting Council’s revised Code.
Governance in Brief – October 13, 2022
Musk revives Twitter buyout, sparking financing concerns Elon Musk announced on October 4 that he will move forward with his original bid of USD 54.20 per share, while seemingly maintaining his right to pursue damages against Twitter for having allegedly misrepresented its usage statistics. The trial on the matter has been put on hold, but may be rescheduled for November should the deal not be closed by October 28.
The Impact of Cyberattacks on Stock Prices
Data privacy and cybersecurity-related issues have become major drivers of business risk in recent years. Based on Morningstar Sustainalytics’ Data Privacy and Security (DP&S) incident data, this report reviews recent DP&S incident trends and assesses the impact of significant cyberattack Incidents on stock returns over time.
Governance in Brief – October 6, 2022
Credit Suisse share price plunges amid concerns of collapse Credit Suisse saw its share price drop 11.5% to an all-time low on October 3 amid concerns surrounding the bank’s financial stability and ability to restructure its business. Spreads on the bank’s credit default swaps, which provide investors with protection against financial risks, rose sharply last week following media reports that the bank was seeking to raise capital.
Data Privacy and ESG Risk: 7 Key Questions Every Company Needs to Address
As businesses become more digitized and reliant on personal data, cybersecurity has become a top concern among CEOs and investors. Companies that fail to effectively manage and fund related measures will face a slew of ESG-related challenges and risk.
Climate Change, Innovation, and Cybersecurity in the Defense Industry: New Opportunities for ESG Investors
While perhaps not a widely considered link between the defense industry and climate change, several Eurosatory conference sessions addressed how climate change can intensify security risks and threats.
What’s Happening in Sustainable Finance: Blue Bonds Make Waves, ‘Sleeping’ Sustainability-Linked Loans Raise Eyebrows, and More
In this month’s rundown of sustainable finance market developments, we discuss the outlook for renewables, interesting blue bond transactions and the emerging trend of “sleeping” sustainability-linked loans causing concern among market participants.
Governance in Brief – September 29, 2022
P&G Chair targeted over ESG risks Friends of the Earth, with the support of the Natural Resources Defense Council and the Rainforest Action Network, has filed a “notice of exempt-solicitation” urging Procter & Gamble investors to oppose both the reelection of CEO Jon Moeller as board Chair and the reelection of two members of the “Governance and Public Responsibility Committee.”
The Hidden Costs to Business of Overlooking Data Privacy, Cybersecurity and ESG
As businesses become more digitized and reliant on personal data, cybersecurity has become a top concern among CEOs and investors. Companies that fail to effectively manage and fund related measures will face a slew of ESG-related challenges and risk.
EU Action Planning: ESMA Questions and MiFID Data begs Further SFDR Clarity for Investors
Regulators asking questions about topics central to the EU Action Plan show that more work needs to happen to make this ambitious, first-of-a-kind sustainable finance legislation workable for the market and supervisors and more useful for end investors.
Governance in Brief – September 22, 2022
DOJ unveils crimefighting policies for corporate misconduct The U.S. Department of Justice has announced a new “carrots and sticks” approach to fighting corporate crime that encourages companies to report misconduct while making it more difficult for repeat offenders to enter settlements and deferred prosecutions.
Physical Climate Risks: 6 Things Portfolio Managers Need to Know
The negative physical impacts of climate change are being felt by communities and corporations globally and are likely to get worse in the coming years. The knock-on costs of more frequent “once-in-a-century” climate events on economies are likely to rise. To prepare for this looming threat, investors must forecast the asset-level effects of climate change on companies in a granular and sophisticated way. Here are six things portfolio managers should know to manage and mitigate the physical risks of climate change to their portfolios and meet growing list of climate-focused reporting requirements.
Financing a Sustainable Future: The Evolution of Sustainability-Linked Finance Instruments
The sustainable finance market has seen rapid growth in the last two years, with sustainable debt issuance surpassing US$1.6 trillion in 2021. This blog explores the market trends and future of sustainability-linked loans and sustainability-linked bonds.
Applying Business and Human Rights International Standards to Investor Due Diligence
Socially conscious ESG investors are interested in how to implement international business and human rights norms in their portfolios and understand the potential impacts of applying additional screening criteria within their strategy.
Governance in Brief – September 8, 2022
BHP shareholders seek coherent climate policy Shareholder activist group The Australasian Center for Corporate Responsibility (“ACCR”) has, with the support of circa 100 co-sponsors, submitted a set of climate-focused resolutions to BHP Group’s next AGM. The ACCR is urging the miner to "proactively advocate for Australian policy settings that are consistent with the Paris Agreement's objective of limiting global warming to 1.5° Celsius."