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Credit Ratings Embrace More Systematic Consideration of Environmental and Social Governance
May 26, 2016
Credit Ratings Embrace More Systematic Consideration of Environmental and Social Governance
London, 26 May 2016- Leading credit ratings agencies are joining an initiative to look at Environmental and Social Governance (ESG) in a more systematic way, the Principles for Responsible Investment (PRI) announced today. To kick-start that initiative, 100 investors managing $16 trillion assets under management, and six credit rating agencies have signed a Statement on ESG in Credit Ratings and Analysis.
The credit ratings agencies taking part in the initiative include S&P Global Ratings, Moody's, Dagong, Scope, RAM Ratings and Liberum Ratings.
The launch of the Statement marks the start of a two-year programme funded by The Rockefeller Foundation to bring investors and credit ratings agencies together in a series of 'ratings forums' around the world to discuss the links between ESG and creditworthiness. The project has been initiated by the PRI with support from the UNEP Inquiry and a committee of PRI signatories, which include some of the world's largest fixed income investors.
"Credit rating agencies are a crucial part of the puzzle for identifying systemic ESG risks in debt capital markets," said Fiona Reynolds, managing director of the PRI. "By signing this Statement, these organisations are affirming their commitment to more systematic and transparent consideration of sustainability and governance factors in credit ratings and analysis."
"This joint statement by ratings agencies and investors marks another important step towards a sustainable financial system," said Nick Robins, co-director of the United Nations Environment Programme Inquiry into the Design of a Sustainable Financial System (UNEP Inquiry).
Read more at UNEP NEWS CENTRE.
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