Sustainalytics Reporter July 2011

Issue No. 5
July 2011

A Message from Michael Jantzi:  

As you know, the UN PRI has changed its governance structure and for the first time non-asset owners will be represented on the Advisory Council. I'm putting my name forward for a seat on the Council because I want to contribute to the PRI principles' practical and conceptual development, which are critical to the take up of RI by the mainstream investment community over the next several years. Follow the link to read my candidate statement and biography.


There are 31 asset owners and service providers vying for four seats on the Advisory Council. The full list of candidates is available at .


To cast your vote, please email the names of your preferred candidates (along with your name and organization) to Each signatory organization may submit only one ballot.  Please note that voting ends on July 25.


I thank you for your consideration.



Analysts' Insights 


Conventional Arms Trade: A Concern for Investors?

Daan Schoemaker   


Daan Schoemaker

Daan Schoemaker

Product Manager

Investor risks related to the conventional arms trade is likely to increase now that civil groups are broadening their campaigns to include controversial weapons, such as cluster munitions and anti-personnel mines, and the  conventional arms trade. The civil uprisings in countries like Egypt and Libya have brought the issue of trade with controversial regimes to the forefront. In particular the gains seen from investing in companies or countries who trade in conventional arms with dubious end-user has been called into question.


Although the UN and some states have imposed arms embargoes against some countries deemed to be high risk (including Libya in February 2011), certain others with poor human rights records are still not subjected to these embargoes. 


The trade in conventional arms, although legal, poses various risks to investors nonetheless. Investors face risks from future, more stringent legislation (such as UN and state embargoes). Currently, the UN is in the last stages of negotiating a new Arms Trade treaty, which will set new global standards for arms trade. In July 2011, this initiative garnered the support of an investor coalition. Irresponsible arms trade also creates risks related to business operations, reputation and corruption.


How Responsible Investors Can Manage Their Risks:
  • Exclude companies that have breached arms trade embargoes (e.g. UN, EU or U.S. embargoes). Although such incidents are unlikely for listed companies, they could occur incidentally.
  • Adopt a responsible investment policy that addresses controversial end-use and high risk countries. Though such a policy would not exclude the overall defence industry, investors could avoid the most irresponsible forms of arms export and the companies involved.
  • Evaluate your ownership of state bonds in countries that export arms (but have inadequate arms export regulations) or major arms importing countries from emerging markets. 
To learn more about the conventional arms trade read Conventional Arms Trade: An Emerging Reputational Risk for Investors.
Product Spotlight

Country Risk Monitor 


As a key component of fixed income environmental, social and governance (ESG) research, the Country Risk Monitor (CRM) provides institutional investors with a means to assess a country's vulnerability to key ESG risks. It provides up-to-date ESG information for more than 130 countries and offers clients a user friendly and flexible interface. The CRM has more than 30 performance indicators, a number of negative filters, and includes detailed information on international sanctions and conventions. The CRM also allows you to rank, benchmark or screen countries using a standard or customized weight matrix. 


For more information on this or any other Sustainalytics offering, please contact a sales representative in your region.


Sustainalytics' Perspective


New reports released

Eurosif and Sustainalytics' Aerospace & Defence Sector Report  is now available. We have also published the first of three reports on the materiality of sustainable business activities for companies in the natural resources sectors. Follow the link to read Sustainability and Materiality in the Mining Sector. Reports focused on the oil and gas, and forestry sectors will be published in the coming months.


Access to Medicine: Perspectives on the Medicines Patent Pool

Sustainalytics recently hosted an online webinar examining the issue of access to medicine and the role investors and pharmaceutical companies can play in improving access worldwide. Innovation in Access to Medicine: Perspectives on the Medicines Patent Pool featured guest speakers from Oxfam America, the Medicines Patent Pool, Sustainalytics and ICCR. Download materials related to the webinar here


In this issue
Analysts' Insights
Product Spotlight
Sustainalytics' Perspective
Sustainalytics in the Media
Inside Sustainalytics
Meet Sustainalytics in your Region

PRI in Person 

15-16 September, 2011

Paris, France 


Eurosif Annual Conference 

22 September, 2011

Brussels, Belgium


GRI Course (Mining specific) 

28-29 September, 2011

Toronto, ON, Canada


SRI in the Rockies 

2-5 October, 2011

New Orleans, USA 


ESG Europe 

4-5 October, 2011

Amsterdam, the Netherlands 


To view more events, click here.


Sustainalytics in the Media 


Maclean/Jantzi-Sustainalytics Top 50


For the third year in a row, Maclean's Magazine has partnered with Sustainalytics to present the

Top 50 Socially Responsible Corporations. Based on Sustainalytics' research, the companies listed have demonstrated strong performance in the areas of environmental, social and/or governance initiatives. Some notable companies on this year's list include Bombardier Inc., Ford Motor Company and Scotiabank. Follow the links to view the full list and accompanying article.



CEO in the spotlight!

Michael Jantzi was recently interviewed for two articles. In Germany's Börse Online Michael reflected on the state of responsible investing. Read the full article (in German) here. He was also interviewed for the Globe and Mail's "At the Top" feature which will  appear in the July 25th edition.


Inside Sustainalytics


Elia Tarrega named to SpainSIF board

Congratulations to Sustainalytics Spain's Managing Director Elia Tarrega, on being named treasurer of SpainSIF. Other board members named at SpainSIF's annual assembly include board president Ines Garcia Pintos of CECA and secretary Antoni Ballabriga of BBVA.


Brand new pages at! 

The power behind our ESG research is our team of analysts. On our new Team Sustainalytics webpage, we showcase our talented and diverse staff. Check out the team at We've also added an improved contact page at which includes an interactive map and information for all of our offices and representatives across the globe. Stay tuned for more changes ahead.

Tell us what you think


In a continuous effort to improve the overall quality of our newsletter, we would appreciate any feedback, ideas and/or suggestions from our readers. What would you like to see in upcoming newsletters? Share your views with us by sending an email to 

ESG Leader

Sustainalytics voted Best ESG Research House by IPE/TBLI Group
About Sustainalytics

Sustainalytics is a global leader in sustainability research and analysis for investors and financial institutions, specialized in analyzing environmental, social and governance (ESG) criteria for companies, institutions and countries. We provide a global perspective, underpinned by nearly 20 years of local experience and expertise in the responsible investment and traditional socially responsible investment markets. Sustainalytics is proud to be voted the Best ESG Research House of the Year by IPE/TBLI Group. The firm is headquartered in Amsterdam with local offices in Boston, Frankfurt, Madrid, Paris, Timisoara and Toronto; and with representatives in Brussels and Copenhagen.