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Material ESG Issues

Stakeholder Governance

Two people with four arrows around them, illustrating a cycle.

Understanding Stakeholder Impact

The Stakeholder Governance Material ESG Issue (MEI) centers on comprehending a company's influence on various stakeholders and its adept management of these impacts. 


Tailoring to Business Models
Prioritizing stakeholders aligns with a company's distinct business model. Evaluating environmental and social risk management strategies provides insights into stakeholder engagement approaches.


Assessing Governance Risks
Our analysis, within the Morningstar Sustainalytics ESG risk ratings framework, scrutinizes board oversight, committee structures, and alignment of disclosures with best practices to mitigate unmanaged risks.


Scrutinizing Policies and Programs
We delve into a company's policies and programs governing its impact on specific groups. Evaluations range from environmental policies managing harm reduction to discrimination policies promoting workplace equality.


Commitment to Global Standards
Exploring UN Global Compact membership reflects a company's dedication to universal principles on human rights, labor, environment, and anti-corruption, underscoring proactive societal contributions. This framework offers a nuanced understanding of governance practices, providing a comprehensive evaluation of stakeholder impact and sustainability commitment.