Entity Assessments
Measuring progress, not just promises. Evaluating transition readiness and green equity credentials.
Overview
Entity Assessments provide independent evaluations of an organization's sustainability and transition journey. From assessing preparedness for the transition to a low-carbon economy to evaluating alignment with green equity principles, these solutions deliver transparent, forward-looking perspectives grounded in S&P Global Ratings' analytical approach.
Through well-established methodologies and sector-specific insights, Entity Assessments help issuers communicate their sustainability ambitions, support investor decision-making and enhance market confidence through credible third-party analysis.
Green Equity External Reviews
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What is the Green Equity External Review?
What is the Green Equity External Review?
An S&P Global Ratings Green Equity External Review provides an opinion on an entity’s consistency with certain third-party published green or transition equity principles. Green Equity External Reviews do not assess credit quality, and do not factor into credit ratings.
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Green Equity Exchange Designations
Green Equity Exchange Designations
S&P Global Ratings is currently an approved reviewer for three major stock exchanges' green equity designations: B3 Ações Verdes (BAV), Nasdaq Green Designations, and the SIX Swiss Exchange 1.5°C Climate Equity Flag. S&P Global Ratings assesses alignment with the requirements for the Philippine Green Equity Label set out in the Guidelines on Philippine Green Equity.
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Our approach
Our Approach
Our assessment is organized into three elements that are common across various designation requirements:
- Green revenue and assessments
- Fossil fuel revenue
- Transition plan and disclosures
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Use cases
Use Cases
Obtaining a Green Designation on Stock Exchanges
Companies seeking to obtain a green designation on certain stock exchanges (e.g.: B3 Ações Verdes (BAV), Nasdaq Green Designations, SIX 1.5°C Climate Equity Flag, Philippine Green Equity Label), to help provide transparency on their green business models, status and strategies to investors, business and other stakeholders.
Investor and Stakeholder Communications
Demonstrate the credibility of your green credentials in your communications to investors and other stakeholders.
Before an IPO Announcement
Companies seeking an external opinion on their activities to list on a stock exchange via a green equity Initial Public Offering (IPO) announcement.
Climate Transition Assessments
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What is the Climate Transition Assessment?
What is the Climate Transition Assessment?
The Climate Transition Assessment (CTA) is a qualitative opinion on where a company is on its current transition journey and where we expect it to head into the future, based on an assessment of planned transition activities and implementation drivers.
The CTA outcome is a single Future Shade, based on the award-winning Shades of Green approach, which shows the expected alignment of a company’s activities with a low carbon, climate resilient future (and alignment with the Paris Agreement), based on the feasible transition timeline for the company’s sector and its own transition plan/commitments.
Our Climate Transition Assessment now includes industry peer comparison, a Transition Progress score, and greater transparency into our Shades of Green shading approach.
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How does the Climate Transition Assessment differ from a Net Zero Target Assessment?
How Does the Climate Transition Assessment Differ from a Net Zero Target Assessment?
The CTA is not a net zero assessment. Whereas many net zero targets are distant, reaching as far as 2050, the Climate Transition Assessment analyzes near-term actions and investments that the company has planned, and their likely implementation, considering potential risks and blockers.
The CTA can be applied across sectors and all starting points along the climate transition spectrum, including those earlier in their transition journey, and provides a forward-looking opinion based on a company’s transition plan.
We can offer a Climate Transition Assessment for both non-financial corporates as well as financial institutions. For more detail on how we assess activities for corporates and financial institutions please refer to the Analytical Approach.
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Our approach
Our Analytical Approach
A Climate Transition Assessment is our qualitative opinion of how consistent with a low carbon, climate resilient future we expect an entity's economic activities will be once the entity's planned transition changes are realized and potential material implementation risks are considered. We express our opinion using a single Shade of Green ranging from Dark Green to Red.
Our CTA analysis includes:
- Current Shade (based on the Shades of Green spectrum)
- Climate Transition Plan Assessment
- Future Shade (based on the Shades of Green spectrum)
- Transition Progress Score
- Comparison to peers on key environmental performance indicators
Final Report Options
Climate Transition Assessments are made publicly accessibly on our website exclusively for clients located outside the European Union (EU). For EU-based clients, Climate Transition Assessments are available solely on a private or confidential basis.
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Use cases
Use Cases
Financing: Debt
Demonstrate your company’s transition readiness to obtain sustainability or transition financing. Use the CTA either for labeled debt, in combination with a Second Party Opinion, or for unlabeled debt to demonstrate your commitment to transition at entity-level.
Before an IPO Announcement
Companies seeking an external opinion, where relevant, on their activities for listing on stock exchanges or Initial Public Offering (IPO) announcement.
Investor and Stakeholder Communications
Demonstrate the credibility of your transition plans in your communications to investors and other stakeholders, particularly for companies in transitioning sectors.
Qualitative Climate Transition Risk Analysis
Provide a qualitative, deeper dive opinion for investors and banks/financial institutions seeking to understand the climate risk of their portfolio companies, including the transition ambition and plan of a particular company.
Learn more about our analytical approach and the Shades of Green
Public Reports
Contact Us
Learn more about Entity Assessments
Please fill out the form so we can connect you to the right person. Indicate in the Comments field which product are you interested in: Green Equity External Reviews, Climate Transition Assessments, or both.