S&P global gives investors new tool to spot ESG red flags

21 / 06 / 2026

By Marwa Nassar - -

S&P Global Sustainable1 has launched a new United Nations Global Compact (UNGC) Screening Dataset designed to help investors identify potential ESG risks and assess whether companies align with the UNGC’s principles on human rights, labor, the environment, and anti-corruption.

The dataset currently covers a proprietary universe of 16,500 companies globally, with coverage expected to expand to approximately 24,000 companies, providing investors, banks, and corporates with a centralized screening tool for sustainability-related risk assessment.

Tracking corporate controversies:

The new dataset combines two key screening approaches to help users identify potential areas of concern.

The first, controversy screening, tracks corporate controversies linked to one or more UNGC principles. The second, business involvement screening, flags companies generating revenue from specific controversial products.

Together, the tools provide structured insights into corporate conduct and potential areas of misalignment with internationally recognized sustainability standards.

Supporting investment decisions:

“When investors evaluate portfolio risk, understanding any controversies companies are involved in can be a critical step. To help investors understand these risks, we have launched the S&P Global Sustainable1 UNGC Screening Dataset,” said Thomas Yagel, Head of Sustainable1 at S&P Global Energy.

“This comprehensive, foundational tool identifies corporate conduct assessed against UNGC principles and better informs investment decisions,” he added.

According to Yagel, the dataset delivers clear UNGC alignment labels that can support portfolio construction, risk management, and ongoing investment oversight.

AI at core:

The dataset leverages S&P Global’s artificial intelligence and machine learning capabilities to identify, classify, and quantify ESG and business risks.

The technology continuously screens millions of public sources worldwide—including news outlets, NGOs, regulators, and other stakeholders—in multiple languages to detect emerging risk incidents in real time.

The findings are then reviewed and contextualized by Sustainable1’s Controversy Research team to enhance accuracy and provide investors with decision-ready risk indicators.

Human rights risks dominate:

Alongside the launch, S&P Global Sustainable1 released a white paper examining the role of controversy data in investment decision-making.

The analysis found that corporate misalignment with UNGC principles is most frequently associated with human rights-related controversies. Environmental impacts and corruption-related issues also emerged as significant sources of controversy-driven risk.

According to the report, integrating these indicators into investment processes can help investors identify elevated exposures, engage companies using a stronger evidence base, and strengthen accountability expectations aligned with UNGC principles.

Expanding ESG risk oversight:

The launch reflects growing investor demand for more structured and transparent tools to assess sustainability-related risks as ESG considerations become increasingly integrated into investment strategies and corporate decision-making.

By combining AI-powered monitoring with human oversight, the new dataset aims to provide a more comprehensive view of corporate conduct and emerging ESG risks across global markets.