Measuring country intangibles

Country Sustainability Ranking

13-04-2017 | Article

Country sustainability: Trump to derail the US?

After Since the inception of our proprietary Country Sustainability Ranking tool in 2007, the United States has always occupied a position somewhat below the average of high income countries. It is currently ranked 15th, with an ESG score of 6.97 (on a scale of 1-10, with 10 being the highest), up from 6.36 in 2007, pointing to a fairly robust and persistent sustainability performance over the past decade. However, the election of Donald Trump to the US presidency has given rise to widespread concern that the country might be drifting off course in terms of sustainability. 
 

Robust governance: the foundation for a solid and balanced ESG profile

The United States exhibits a solid and reasonably balanced overall ESG profile, with governance constituting the strongest pillar, slightly ahead of the social dimension, and with the environmental sphere lagging behind the other two dimensions. The US mostly earns strong scores on our quality of governance indicators, as it boasts a generally strong record of protecting political rights, economic freedom and containing political risk. Although the American political system is characterized by a well-developed system of checks and balances and functioning policymaking institutions, in recent years government effectiveness has been hampered by increasing political polarization and a divided government.

Author

Max SchielerMax Schieler

Senior Country Risk Specialist


Country Sustainability Ranking Methodology: Measuring country intangibles

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Video

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Rikkert Scholten, Senior Portfolio Manager at Robeco, explains what the Country Sustainability Ranking is and how it complements traditional sovereign debt analysis.