Strategy & planningFAQs

How interested are credit ratings agencies in ESG?

Their interest is increasing rapidly. In 2016, the UN PRI noticed a lack of interest in sustainability by credit ratings agencies and took the initiative to engage with them. The CRAs responded rapidly and materially such that in 2019, the PRI hailed the progress made by the three major ratings agencies as a 'race to the top' … and the race continues apace…

How interested are credit ratings agencies in ESG?

 

… as the ratings agencies have developed scoring systems on ESG factors, have develop green bond accreditation services, have acquired ESG ratings businesses and expanded their footprint in this market segment in many other ways. Companies that issue significant amounts of debt and are exposed to material sustainability issues would do well to understand the processes by which each of the major ratings agencies assesses the sustainability outlook for their sector and stock.