How companies manage the impact of their products and services can pose varying degrees of environmental and social risks to investors’ portfolios. Sustainalytics’ ESG Risk Ratings assess this risk through an analysis of the Environmental and Social (E&S) Impact of Products and Services material ESG issue. This issue shows investors which companies are most exposed to this risk and how well they are managing it. In this backgrounder, we will examine why this issue is growing in importance, analyze which industries are most exposed to this issue and highlight companies that perform well on this material ESG issue.