While in classic credit ratings economic criteria such as profitability, liquidity and risk are considered, in ESG ratings sustainability criteria are analyzed. An ESG rating shows how sustainable an issuer, for example a company or a financial product, such as a bond, is and to what extent ESG criteria are fulfilled by the company. With the help of an ESG rating, stakeholders such as investors can determine how well a company or an investment is positioned with regard to ESG issues.
ESG rating agencies and their scales
ESG ratings are published by different rating agencies, each of which has a different scaling. Below is a selection of rating agencies and their scaling
ESG rating agencies |
Scaling |
|
worst | best | |
Sustainalytics | 40+ | 0 |
MSCI | CCC | AAA |
ISS | D- | A+ |
Eco Vadis | 0 | 100 |
Imug | 0 bzw. E | 100 bzw. A |
Crif | E | A |
In regard to ESG ratings, we can provide support in the following areas:
- ESG rating preparation: support in the selection of a suitable rating agency
- Support in data collection and recording as well as preparation of the necessary information
- Support in improving ESG data for potential rating optimization