The firm has introduced ESG Evaluation which will include cyber risk
Investors and financial advisors have a new tool to assess how a company’s environmental, social, and governance performance may impact their investments.
S&P Global Ratings has launched ESG Evaluation, a cross-sector, relative analysis of an entity’s capacity to operate successfully in the future, grounded in how ESG factors could affect stakeholders and potentially lead to a material direct or indirect financial impact on the entity.
It is separate to credit ratings and will include a cyber risk component through a collaboration with Guidewire Software, which is best known as a provider of leading risk analytics and management platforms for P&C insurers.
The new tool aims to address a lack of consistency, standards, and forward view of many ESG information providers, which S&P says results in widespread difficulties for investors looking to integrate ESG factors into their investment decisions.
“The ESG Market continues to grow in strategic importance for our customers, investors and market participants, therefore, we have developed a solution to evaluate the expanding risk components of ESG,” said Chris Heusler, Chief Commercial Officer at S&P Global Ratings. “Our ESG Evaluation offering as a whole has been designed to be a natural extension of our Ratings360 platform which serves our customers in assessing multi-dimensional credit risk attributes.”
He added that the continued collaboration with Guidewire enables deeper levels of cyber risk insights and knowledge when developing an ESG Evaluation.
