Tag: ESG
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The Relevance of EBA’s ESG Scenario Analysis Guidelines for Credit Rating Agencies
As climate change and broader sustainability considerations increasingly shape financial risk landscapes, the European Banking Authority’s (EBA) recent Guidelines on ESG Scenario Analysis represent a pivotal regulatory milestone. While primarily targeted at credit institutions, these guidelines carry substantial implications for credit rating agencies (CRAs), whose methodologies must keep pace with evolving definitions of risk. Aligning Credit Risk Assessment…
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EU’s ESG Rating Regulation Aims to Challenge Non-European Dominance
The European Union (EU) has recently reached a preliminary agreement between the EU Council and Parliament on the regulation of Environmental, Social, and Governance (ESG) ratings. This move is perceived as an attempt to break the dominance of non-European rating agencies, particularly those based in the United States. While the agreed-upon transparency rules seem to…
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Strengthened Morningstar’s ESG Offering: Sustainalytics and Indexes Aligned
Morningstar, Inc. has announced that it will align its Morningstar Sustainalytics and Morningstar Indexes product areas under the leadership of Morningstar Indexes President Ron Bundy. This strategic move aims to strengthen Morningstar’s position in the environmental, social, and governance (ESG) market and better cater to the evolving needs of investors. Morningstar is a leading provider…
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Scoring And Being Scored
Moody’s Corporation announced today that it has received an ‘A’ score from CDP on climate action for the second consecutive year. The top score recognizes Moody’s as one of a small number of high-performing companies out of nearly 12,000 that are leading actions to cut emissions, mitigate climate risks and develop the low-carbon economy. It…
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ESG Ratings: The Good, the Bad, the Ugly
Headline ratings no longer enough Prof. Dr. Nils Stieglitz gave a welcome address to the conference “ESG Ratings: The Good, the Bad, the Ugly” of the Corporate Governance Institute (Prof. Dr. Julia Redenius-Hövermann) at the Frankfurt School of Finance & Management, followed by Prof. Dr. Zacharias Sautner, showing data of Hartzmark and Sussman, 2019, proving…
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Rating Agency Accused of Using Original, Then Rewritten Data
Refinitiv ESG’s rewriting not a one-time event Prof. Dr. Kornelia Fabisik, Assistant Professor of Finance, Frankfurt School, reports on some discoveries at one of the ESG rating agencies at the conference “ESG Ratings: The Good, the Bad, the Ugly” of the Corporate Governance Institute (Prof. Dr. Julia Redenius-Hövermann) at the Frankfurt School of Finance &…
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TELOS ESG Fund Check Professional Launched
An engine room of ESG fund management is in the making. EccoWorks GmbH, known in Germany for their sustainability consulting, and the long-standing specialist for fund ratings in the institutional sector, TELOS GmbH, have bundled their know-how in the field of sustainability to develop an ESG fund rating product as part of a cooperation. The…
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Moody’s Heatmap Shows Heightened Environmental Credit Risk
Moody’s analysts have revised their environmental classification to reflect evolving environmental, social and governance standards, disclosure frameworks and market conventions among issuers and investors. Environmental risks can arise from regulatory and policy issues, hazards or a combination of both. The five environmental categories Moody’s considers most material to credit are carbon transition, physical climate risks,…
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Trust In a Time of Uncertainty
The corona pandemic is far from over. This is especially true if you do not look at it from a purely medical point of view, but also from the perspective of the social and economic consequences. The virus divides the opinions of experts: on the one hand those who warn of the dangers of the…
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