S&P Global Ratings has announced that it has started to include ESG (environmental, social, and governance) sections within its credit rating reports on corporate entities. The new section signifies a move towards greater transparency across S&P Global Ratings’ credit analyses, particularly as market interest in ESG factors continues to increase.
The credit ratings agency has been phasing in the dedicated ESG sections, having already started with two sectors that have the greatest exposure to credit-relevant ESG factors: oil & gas and utilities. Throughout the course of the year, S&P Global Ratings expects to roll out the initiative to all major companies across every sector and smaller companies most exposed to ESG factors – representing approximately 40% of its rated corporate universe.
“We have long incorporated ESG considerations into our credit analysis,” says Michael Wilkins, Managing Director and Head of Sustainable Finance at S&P Global Ratings, “What we aim to do now is to more clearly underline to industry bodies, investors, and stakeholders how we do so.”
Following outreach from Moorgate, the news was covered by: Business Green here and here, Market Watch, Financial Times (behind paywall), Responsible Investor (behind paywall), Top 1000 Funds, GreenBiz, IPE, Markets Media, Bond Buyer, Environmental Finance (behind paywall), Institutional Asset Manager, Better Society (requires subscription) and Think Advisor.