Material Risk Engagement

Material Risk Engagement promotes and protects long-term value by engaging with high-risk companies on financially-material ESG issues.

The focus is on the companies with the highest unmanaged ESG risks. We protect and develop the value of our clients’ portfolio companies through collaborative and constructive engagement that help companies better identify, understand and manage these ESG risks.

Constructed as an engagement overlay to Sustainalytics’ flagship ESG Risk Ratings, the engagement focuses on companies in our universe with an ESG Risk Ratings score of greater than 30, labeled as high or severe risk.

Material Risk Engagement is change-oriented and has a long-term<br/>commitment to engagement. The engagement process defines clear<br/>change objectives with an engagement strategy aimed at the most material ESG issues as identified by the ESG Risk Ratings. The aim is to address the management gaps so the target company improves its ESG performance and risk management.

Investors can use Sustainalytics’ Material Risk Engagement to reduce their ESG-related portfolio risks, and support their portfolio management, stewardship, ESG integration, and proxy voting activities

Tables included:

- MRE_vX_YYYYMMDD_SAMPLE

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Sample Fields

- MRE Engagement status
- MRE Momentum Score
- Summary of Material Risk
- MRE Issue
- MRE Change Objective
- MRE ESG Topics