How are credit rating agencies integrating ESG factors?

March 2, 2022

Note: This resource paper published February 2022 is an update to the original paper G&A published in October 2020.

One of the most important trends in sustainability that the G&A Institute team tracks is the mainstreaming of ESG rankings and ratings alongside the traditional financials. Nowhere is this trend more clear than in the activities of the three main credit rating agencies – Fitch Ratings, Moody's, and S&P Global.

In recent years, through both acquisitions and internal changes, these organizations have expanded their range of ESG focused research and ratings. The credit rating agencies are now integrating ESG data into their credit rating methodologies. While these changes are still in their early stages, over time integration of ESG factors into corporate credit ratings will have a profound long-term impact on financial markets. Forward-thinking organizations must keep these coming changes in mind to ensure they remain competitive.

To help guide companies through this changing landscape, G&A compiled profiles on the three credit rating agencies in this report. The report includes key information about their methodologies and background to provide a foundational understanding of this area.

Fill out the form on the right to download a copy.