KEY TAKEAWAYS

• The rise of disinformation creates reputational risks for Media companies – investors are encouraged to assess commitments to editorial responsibility.
• The shift from traditional to digital media creates both environmental opportunities and risks. In 2020, the number of video streaming subscriptions rose by 26% from the prior year. Continued energy efficiency gains will be necessary to limit the environmental impact of this trend in media consumption.
• The occurrence of corruption and human and labor rights controversies in the Media and Telecommunications industries reveal its exposure to potentially deceptive and fraudulent practices, as well as failures to respect the right to just working conditions and to ensure ethical business conduct.
• The bulk of companies in the Media and Telecommunications industries offer a limited positive impact on the UN-backed Sustainable Development Goals (SDGs), primarily in the areas of delivering education and providing basic services. Media companies may also play a non-negligible role in raising awareness of environmental issues.
• Approximately 12% of companies in the Media and Telecommunications industries achieve the ISS ESG Prime rating, slightly lower than the percentage of Prime-rated companies in the broader ISS ESG Ratings universe.