Controversial business involvement is no longer a niche ESG issue. From fossil fuels and weapons to gambling, sanctions, and human rights abuses, exclusion policies are expanding and scrutiny is intensifying, especially across private markets.
As SFDR and the EU Taxonomy raise the bar, investors must prove that controversial exposures are identified, documented, and consistently screened, even when disclosures are limited.
In this ebook, SESAMm explores:
How exclusion rules are evolving under SFDR, the EU Taxonomy, and investor mandates
Why controversial involvement is harder to detect in private markets and secondaries
Real-world case studies revealing hidden exposure and compliance risk
How AI enables faster, auditable screening across public and private assets
Download the ebook to learn how investors can apply consistent, defensible exclusion screening at scale.
With sustainability being imperative, it's essential to examine how public and private companies align with the Sustainable Development Goals (SDGs). This article, leveraging insights from SESAMm's TextReveal, dives into the behaviors of both sectors across industries, exploring their impact on achieving a sustainable future. Join us as we unravel the complexities of corporate contributions to the SDGs, highlighting key differences and challenges public and private entities face in their journey toward sustainability.
What are the 17 Sustainable Development Goals?
The 17 UN SDG objectives, introduced in 2015 with the target of achievement by 2030, are geared towards building a sustainable society. Initially designed for governments, certain companies can contribute significantly to these goals through their products or conduct. However, our focus here will center on identifying behaviors that counter these 17 objectives.
The analysis of Sustainable Development Goal (SDG) adverse behaviors, as identified by SESAMm's TextReveal, offers a comprehensive comparison between public and private companies within various industries. The focus is to discern disparities in SDG behaviors within the same sector and pinpoint the predominant SDG goal breaches in these industries.
Excluding Goal 2 ("End hunger") due to its alignment with state-related initiatives, the analysis concentrates on corporate-impactful goals.
Public and private sectors face challenges in meeting SDGs, particularly Goals 1 ("End poverty") and 16 ("Peace & justice and strong institutions"), with issues in labor rights and governance. However, public companies are more aligned with Goal 8 ("Decent work and economic growth") across industries, facing a range of controversies from biodiversity to management issues. In contrast, private companies focus on Goal 11 ("Sustainable cities"), dealing with climate change and customer relations risks.
Goal 16 ("Peace & justice and strong institutions") is significant in both sectors but particularly in the Financials and Information Technology for public companies and in Financials, Fossil Fuels, and Health Care for private companies. This goal involves human rights, labor rights, human capital, and governance-related controversies.
These findings highlight the profound impact of SDG-related risks on economic growth and stability across various sectors. Industries like Information Technology, Industrials, and Consumer Discretionary exhibit heightened susceptibility to SDG adverse behaviors, underscoring the necessity for vigilant risk management to ensure economic prosperity and security.
Industrial UNGC Use Case
What is the UN Global Compact?
The United Nations Global Compact (UNGC), established in 2000, outlines ten principles across four main pillars: human rights, labor standards, and anti-corruption. These principles are critical in guiding companies toward ethical and responsible behaviors.
Figure 1: UNGC for public companies.
Figure 2: UNGC for private companies.
The analysis reveals distinct patterns in breaches of UNGC principles. Private companies in the industrials and fossil fuel sectors show a notable correlation with anti-corruption breaches, emphasizing the importance of due diligence in these areas. In the fossil fuel industry, public companies primarily breach environmental principles, while private companies show more breaches related to anti-corruption along with environmental concerns.
Private industrial companies also display a significant number of anti-corruption breaches involving various legal challenges. In the consumer staples sector, public companies primarily face human rights breaches, including forced labor and privacy violations. The private consumer discretionary sector also shows a high number of human rights breaches, particularly related to privacy and diversity and inclusion.
Overall, public companies across various sectors tend to have more frequent or severe UNGC breaches compared to private companies. This highlights the different challenges faced by public and private entities in adhering to the UNGC principles.
Conclusion
Significant variations in sustainability strategies emerge when looking at public and private companies through their SDG performances. Public companies prioritize economic growth and grapple with environmental and governance concerns, while private companies focus on creating sustainable cities, addressing climate change, and fulfilling social responsibilities. Both sectors encounter obstacles in eradicating poverty and ensuring justice, highlighting their crucial roles in promoting global sustainability objectives. This analysis underscores the essential proactive approach needed from both public and private entities to tackle sustainability challenges effectively.
Download the full report to discover how different sectors navigate regulatory pressures and sustainability challenges with real-world examples to guide your strategy.
Reach out to SESAMm
TextReveal’s web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.
Joint customers can streamline their ESG risk decision-making process with SESAMm’s extensive coverage of private and public companies.
Paris, France, May 2 — SESAMm, a global leader in AI-powered ESG insights, today announced that it has launched its ESG Controversy Alerts Data on Snowflake Marketplace. SESAMm’s data availability on Snowflake Marketplace will enable joint customers to access SESAMm’s data lake with 25 billion documents, consisting of five million public and private companies, and across multiple languages.
"With SESAMm's ESG Controversy Alerts Data now available on Snowflake Marketplace, we're giving our mutual customers the tools they need to swiftly and accurately assess ESG risks. This move marks a significant step in our collaboration with Snowflake, aiming to simplify how companies access and use ESG data for better decision-making." Said Sylvain Forté, CEO & Co-founder, SESAMm.
SESAMm is using Snowflake to help joint customers inform business decisions and drive innovations by:
Evaluating target companies' viability and sustainable behavior
Monitoring portfolio companies for ESG controversies
Conducting ESG risk assessments of partners, suppliers, or companies of interest
In addition to enhancing risk-based decision-making, joint customers will be able to access one of the most granular insights in the industry. This includes companies of interest in over 100 languages, automatically analyzed and translated by SESAMm’s AI advanced algorithms, which are delivered via data feed or dashboards.
“We are thrilled to welcome SESAMm’s cutting-edge ESG Controversy Alerts data into the Snowflake Marketplace. This integration not only enriches our ecosystem but also empowers our customers with seamless access to insights important for making better-informed, sustainable decisions. We are excited about the possibilities this partnership unlocks for joint customers’ understanding, and addressing ESG risks.” said Kieran Kennedy, Head of Marketplace, Snowflake.
Joint customers can now leverage SESAMm on Snowflake Marketplace, allowing them to evaluate and monitor ESG risks in any private or public company by obtaining access to third-party data, eliminating data silos in their organization, and all through Snowflake Secure Data Sharing.
About SESAMm
SESAMm is a global leader in ESG controversy data, using advanced Generative AI. It automates monitoring and due diligence on public and private assets. SESAMm provides coverage for more than 5 million companies in multiple languages. SESAMm works with top international firms such as Carlyle, Warburg, Natixis, RBI, Fitch and Oddo.
SESAMm’s AI Technology Reveals ESG Insights
Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.
With summer here, travelers are turning to vacation rental platforms more than ever to plan their getaways. As these platforms grow, it’s important to understand the ESG controversies they face, impacting users, hosts, and local communities worldwide.
Vacation rental platforms like Airbnb, Booking.com, Expedia, and Tripadvisor have faced several ESG challenges recently, including regulatory issues, safety and privacy concerns, and social controversies related to housing affordability and community displacement. Different companies face varied risks: Airbnb deals with global restrictions and legal issues, Booking.com faces antitrust fines and tax disputes, Expedia contends with operational challenges, and Tripadvisor grapples with reputational concerns. All, however, must balance growth with ethical practices.
What are the most pressing ESG challenges currently facing the vacation rental sector? Read to find out.
Booking.com: Legal Storms and Mounting Fines
Booking.com has encountered various ESG risks due to regulatory scrutiny and legal issues. The company faced a €413 million fine in Spain for abusing market dominance with price parity clauses and a €94 million tax settlement in Italy for VAT compliance. Additionally, Russia penalized it for antitrust violations, while hotel operators in Japan filed lawsuits over unpaid fees. Legal scrutiny also surrounds its listings in the occupied West Bank, with investigations by Dutch prosecutors. In the U.S., a court ruled that Booking.com illegally scraped Ryanair’s website. Finally, a significant data breach exposed millions of guests’ sensitive information, raising cybersecurity concerns, and planned workforce reductions highlight ongoing operational risks for stakeholders globally.
Airbnb is facing significant regulatory and legal challenges globally, including Spain's order to remove over 65,000 listings, Italy's €576 million tax settlement, and stricter rental rules in Greece and France. In the US, cities like New York have imposed tight short-term rental limits, while Airbnb is dealing with class-action lawsuits in Canada and pricing accusations in Australia. Safety and privacy issues also plague the platform, including lawsuits related to guest deaths. Furthermore, Airbnb has been criticized for its listings on occupied Palestinian land and its impact on housing affordability. In 2023, the company cut 1,900 jobs, or about 25% of its workforce, increasing its ESG risks amidst evolving pressures.
Expedia Group faces several ESG risks, though generally less severe than its larger peers. Key challenges include a $33 million penalty in Australia for misleading hotel rates, 1,500 job cuts, antitrust investigations in Europe, and a $29.8 million payment under the Helms-Burton Act. Legal issues also involve unpaid commissions, tax avoidance claims, and COVID-19 flight refund disputes. Governance problems include executive departures and a reverse racism lawsuit, along with data breaches affecting millions. Overall, these risks are significant but less severe than those of competitors.
In conclusion, the vacation rentals sector faces significant ESG challenges that threaten its growth and credibility. Major players like Booking.com, Airbnb, and Expedia must address regulatory scrutiny, safety concerns, and social issues to meet the evolving expectations of travelers. By prioritizing transparency, community engagement, and compliance, these platforms can rebuild trust and promote responsible tourism. Embracing these changes not only mitigates risks but also positions them to lead in sustainable travel and reshape the future of vacation rentals.
Reach out to SESAMm
TextReveal’s web data analysis of over five million public and private companies is essential for keeping tabs on ESG investment risks. To learn more about how you can analyze web data or to request a demo, reach out to one of our representatives.
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