S&P Global Ratings launches ESG sections in corporate credit rating reports
S&P Global Ratings has started to include environmental, social, and governance (ESG) sections within its issuer credit rating reports on corporate entities.
The move coincides with the publication of the UN Principles for Responsible Investment (PRI)'s third instalment of the "Shifting Perceptions: ESG, Credit Risk And Ratings" report series, which recommends that credit rating agencies (CRAs) explicitly signpost credit-relevant ESG risks and opportunities in rating reports.
As a member of the PRI's Advisory Committee on Credit Ratings (ACCR), S&P Global Ratings has worked with the PRI since the launch of the ESG in Credit Ratings Initiative in 2016, presenting at investor roundtables globally and contributing to the two previous reports in the series, which help to clarify the link between sustainability and credit quality.
Michael Wilkins, Managing Director and head of Sustainable Finance, S&P Global Ratings, says: "The fixed-income market's heightened focus on ESG has only emerged recently. However, ESG has been at the heart of our ratings approach for many years. We have long incorporated ESG considerations into our credit analysis. What we aim to do now is to more clearly underline to industry bodies, investors, and stakeholders how we do so."