Sustainalytics’ Stewardship Services is where ESG insights become action. Stewardship includes engagement and voting recommendations, and provides a framework, support and direction for investors to integrate ESG and sustainable investment considerations into every stage of the investment lifecycle. Engagement and voting recommendations are effective drivers for enacting broad and meaningful change.
Whether the focus is on biodiversity, human rights, good governance, or other sustainability topics, Morningstar Sustainalytics’ Thematic Stewardship Programmes protect and promote long-term enterprise value by proactively engaging with companies up and down the value chain as well as industry stakeholders to mitigate systemic risks and maximize opportunities.
The stewardship programmes are designed to empower investors with constructive and change-focused engagement activities to address pressing ESG themes that are most material to investors. Our engagement toolbox includes activities such as conference calls, field trips, multistakeholder roundtables, and participatory webinars to influence change. By combining our internal subject-matter and engagement expertise with our clients’ deep knowledge of the issuers and long-term ownership stakes, we aim to enact lasting change.
Latest Insights
Say on Pay: CEO Compensation and the Long Tail of Shareholder Dissent
How Unequal Shareholder Rights Influence Proxy Voting Outcomes and Corporate Governance
Key Features and Benefits
Six Thematic Stewardship Programmes
- Biodiversity and Natural Capital
- Net Zero Transition
- Sustainability and Good Governance
- Human Capital Management
- Scaling Circular Economies
- Human Rights and Transition
Concerted Escalation
Constructive dialogue is our first and always preferred engagement tool. Still, if an issuer is unresponsive to dialogue outreach or is not making significant progress, the Sustainalytics team can escalate the engagement. This approach aims to mount investor concerns via a series of steps to encourage an open and transparent exchange. Persistent unwillingness to engage will result in an engagement status update in the company profile to inform investors of this stalled engagement.
Leverage Case Profiles to Track and Measure Engagement Progress
Utilize our rich database of real-time case information to improve engagement dialogues and to identify best practices for key ESG issues. Leverage a standardized Outcomes-based approach and Milestones to measure engagement progress.
Report to Stakeholders
Sustainalytics’s Stewardship Services provides structured, extractable data that can readily be reported out to stakeholders. Quarterly and Annual reports are also distributed to all clients.
Join one or more of the Following Stewardship Programmes
Become part of one or more of our ongoing programmes, which target 50+ issuers.
Six Programmes
Human Capital Management
Morningstar Sustainalytics’ Human Capital Management Stewardship Programme aims to address the readiness gap of companies to respond to workplace transformations caused by emerging trends to ensure competitiveness in the future and reduce inequalities in the workforce and society. It promotes better management, measurement, and disclosure of data and information about talent management strategies that maximize performance with a healthy, engaged, and productive workforce in line with evolving trends.
Scaling Circular Economies
Scaling Circular Economies emphasizes the shift towards a circular economy and efficient resource management. By engaging with companies across targeted value chains, we aim to promote strategies that seek circular solutions that are adapted to companies’ business models and geared to supporting financial performance.
Biodiversity and Natural Capital
Morningstar Sustainalytics’ Biodiversity and Natural Capital Stewardship Programme addresses the complexity and interlinkages of biodiversity loss and climate change, to assess double-materiality, protect and promote long-term value, and capitalize on opportunities and generate systemic impact.
Net Zero Transition
Morningstar Sustainalytics’ Net Zero Transition Engagement Programme supports institutional investors in advancing their net zero stewardship ambitions by establishing an effective climate-focused dialogue with high-emitting companies on their journey to net zero carbon emissions.
Human Rights and Transition
The Human Rights and Transition Stewardship Programme works with issuers critical to the global economic transition to strengthen their human rights governance and strategy, as well as their approach to human rights due diligence and remediation.
Sustainability and Good Governance
Morningstar Sustainalytics’ Sustainability and Good Governance Stewardship Programme focuses on promoting sustainable business practices, effective governance structures, and accountability mechanisms. It will leverage insights of forward-thinking boards and investors to advance stakeholder-focused governance practices, which support resilience and sustainability across portfolios and markets.
Delivery Options
Global Access
Sustainalytics’ user-friendly investor interface provides full insight into a company’s engagement profile, overall ratings and dialogue. It also includes engagement manager commentary on the case, next steps and upcoming meetings.
Data Services
Basic data points can be delivered as a standard portfolio report in Excel or as a data feed.
Why Sustainalytics?
A Single Market Standard
Consistent approach to ESG assessments across the investment spectrum.
Award-Winning Research and Data
Firm recognized as Best ESG Research and Data Provider by Environmental Finance and Investment Week.
End-to-End ESG Solutions
ESG products and services that serve the entire investment value chain.
30 Years of ESG Expertise
800+ ESG research analysts across our global offices.
A Leading SPO Provider
As recognized by Environmental Finance and the Climate Bonds Initiative.
Related Insights and Resources
The Cost of Climate Indifference: A Pragmatic Look at the Climate and Emergency Preparedness of US Companies
This article explores the climate and emergency preparedness of US businesses, including some of its highest emitting sectors, and the readiness of US companies to mitigate the associated risks.
Say on Pay: CEO Compensation and the Long Tail of Shareholder Dissent
This article explores say on pay voting on CEO compensation, with the aim of illuminating pay practices that lead to low levels of shareholder support. It also identifies opportunities for shareholder engagement based on say on pay voting outcomes.
How Unequal Shareholder Rights Influence Proxy Voting Outcomes and Corporate Governance
This article explains how dual class share structures can distort key governance signals, limiting the influence of minority shareholders on issues ranging from executive compensation to environmental, social, and governance (ESG) resolutions.
Related Solutions
Impact Solutions
Measure, manage and report on the social and environmental impact of your portfolio.
Material Risk Engagement
Engage on the most material ESG risks identified by the ESG Risk Ratings.
Global Standards Engagement
Engage with companies that breach international norms and standards as identified by our Global Standards Screening research.