ESG credit indicators no longer part of reports
Source: Middle East Insurance Review | Sep 2023
S&P Global Ratings will no longer publish ESG credit indicators for publicly rated entities in its reports. However, these alphanumeric ESG credit indicators supplement the narrative paragraphs in its credit rating reports and these narrative paragraphs will continue to be a part of the rating agency’s reports.
S&P said, “Effective immediately, we are no longer publishing new ESG credit indicators in our reports or updating outstanding ESG credit indicators.
“In 2021, S&P Global Ratings began publishing alphanumeric ESG credit indicators for publicly rated entities in some sectors and asset classes. These indicators were intended to illustrate and summarise the relevance of ESG credit factors on our rating analysis through the use of an alphanumerical scale. They supplemented the narrative paragraphs in our credit rating reports where we describe the impact of ESG credit factors on creditworthiness.
“After further review, we have determined that the dedicated analytical narrative paragraphs in our credit rating reports are most effective at providing detail and transparency on ESG credit factors material to our rating analysis and these will remain integral to our reports.”
The rating agency said, “This update does not affect our ESG principles criteria or our research and commentary on ESG-related topics, including the influence that ESG factors can have on creditworthiness.”
S&P said it remains committed to providing the market with transparency on how and when ESG factors influence its assessment of creditworthiness. M