Sustainalytics launches its Sustainable Products Research Initiative
By Mariyam Khaja
In today’s global economy, it pays for businesses to differentiate themselves from the competition. It’s in this spirit that investors and consumers alike are starting to recognize the value of companies that marry both profit and purpose.
The interest behind sustainability initiatives within corporate, consumer and investor circles is what prompted Sustainalytics, a Canadian company specializing in ESG and corporate governance, to launch its Sustainable Products Research Initiative.
“We’ve seen a real uptake around the sustainable development goals, and those interested in understanding more about how corporations can contribute to achieving these goals,” said Megan Wallingford, Manager for Sustainable Products Research at Sustainalytics.
Wallingford says that one of the primary ways of understanding a company’s contribution to the SDGs is to look at what products and services they produce. The Sustainable Products Research Initiative is an extension of that belief, identifying over 10,000 companies driving more than five percent of their revenue from environmentally and socially sustainable products and services.
Featured companies have products and services that offer overarching environmental and social sustainability benefits, applying to one of the twelve different thematic areas central to the research: renewable energy, green transportation, water, energy efficiency, green buildings, affordable housing, health, sustainable agriculture, education, pollution prevention and reduction, resource efficiency, and financial inclusion.
Each theme was decided on with the input of stakeholders, while taking into consideration what is considered to be “sustainable” across industry standards and market norms. Sustainable development goals, green bond and social bond principles also informed which themes were included.
After establishing this framework, Sustainalytics’ team of research analysts was able to judge which companies’ products and services best embodied each theme.
Wallingford says this research will help investors identify and invest in companies working towards creating a more sustainable tomorrow.
“Our clients are interested in this research for multiple purposes: in some cases, they are seeking to create sustainability-themed products or capital allocation strategies, others are interested in integrated product involvement analysis into their ESG analysis, and others are focused on client portfolio reporting,” she said.
“Ultimately, our mission with this product is to help our clients and the market understand how companies’ products and services contribute to a more just and sustainable world.”
To learn more about this initiative, please visit: https://www.sustainalytics.com/press-release/sustainalytics-launches-its-sustainable-products-research/
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