Using ESG Analysis to Support a Sustainable Future

This article is written and published by S&P Global Market Intelligence, a division independent from S&P Global Ratings.

The transition to a sustainable future is gaining tremendous momentum, and environmental, social, and governance (ESG) considerations are now being adopted in the decision-making process to not only mitigate risks but also identify opportunities. Due to this, demand for consistent, forward-looking views of ESG information is growing rapidly. 

To help harmonize disparate ESG information and enable companies and their investors to better understand the ESG risks and opportunities on their horizons, S&P Global Ratings produces ESG analysis available on RatingsDirect®. S&P Global Ratings analyze ESG factors in two separate ways: as part of the analysis of credit ratings and as part of ESG-specific evaluations and opinions.

ESG Credit Indicators: ESG Credit Indicators assess how ESG factors influence credit ratings. In addition, there is a designated ESG section in Credit Ratings Reports and regularly published insight dedicated to ESG.

ESG Evaluations and Opinion: Evaluations are a forward-looking opinion of a company’s ability to manage future ESG risks and opportunities. Available sustainable financing opinions include the Framework Alignment Opinion and Green Transaction Evaluation.

Check out our infographic below for more insight on ESG in credit ratings, and evaluations and opinions available on RatingsDirect.