“Are ESG factors structural determinants of economies?” – Beyond Ratings – September 14, 2018

On September 14, 2018 Beyond Ratings published a research note on the role of ESG factors in sovereign risk analysis.

The executive summary explains:  “The rationale to include ESG factors in sovereign risk analysis is based on increasing global recognition of their role to play in sustainable development. Some progress was made in the first decades of the millennium. Governments, international organisations and civil society were mobilized to implement more inclusive policies, to diminish poverty and starvation and to ensure environmental sustainability.

What is different nowadays is the international consensus about sustainable development.

In this context, Beyond Ratings believes that it is now very important to assess ESG performance in sovereign risk analysis and aims to offer answers to the following question: how do ESG factors affect the long-term performance of economies?  This question will be explored through a series of research notes, including this one.

The main goal here is to have a comprehensive view of the very long-term  sovereign risk and to provide information to investors that not only considers economic and financial performance, but also factors affecting long-term sustainability, for instance sovereign risk.”

You may read the research note on the publications page of the Beyond Ratings internet site.