S&P ditches ESG debt rating scores amid criticism
“S&P Global will no longer give scores to corporate borrowers on ESG factors, amid criticism from political groups and questions about their usefulness.
Since 2021 the debt rating agency has used a scoring system of one to five to denote a company’s ESG-related risk. Five is the lowest grade exposure, one is the highest.
However, last week S&P changed tack. In a statement on Friday (4 August), it said that it will offer ESG analysis in text only, not numbered scores, ‘effective immediately’.”
[COMMENTARY] I guess this is a win for the anti-ESG protagonists! However, S&P hasn’t completely caved as they’re still giving text opinions.
S&P ditches ESG debt rating scores amid criticism, by Laura Miller, August 8, 2023, Investment Week, UK.
