“Environmental, Social and Governance Evaluation”– S&P Global – April 10, 2019

On April 10, 2019 S&P Global Ratings announced the launch of its new Environmental, Social and Governance (ESG) Evaluation.

“S&P Global Ratings’ environmental, social, and governance (ESG) Evaluation is a cross-sector, relative analysis of an entity’s capacity to operate successfully in the future and is grounded in how ESG factors could affect stakeholders, potentially leading to a material direct or indirect financial impact on the entity. ESG factors typically incorporate the entity’s impact on the natural and social environment and the quality of its governance. Our definition of stakeholders for a particular entity goes beyond shareholders to include employees, the local community, government, regulators, customers, lenders, borrowers, policyholders, voters, members, and suppliers, among others.

The ESG Evaluation is not a credit rating, a measure of credit risk, or a component of our credit rating methodology. However, the information we gather for an ESG Evaluation can inform our credit analysis of rated entities.”

You may read more and download the report “Environmental, Social, And Governance Evaluation Analytical Approach” from the S&P Global internet site.