Credit Risk and Ratings Initiative

The ESG in Credit Risk and Ratings Initiative aims to enhance the transparent and systematic integration of ESG factors in credit risk analysis. The PRI is facilitating a dialogue between credit rating agencies (CRAs) and investors to cultivate a common language, discuss ESG risks to creditworthiness and bridge investor-CRA disconnects.

The initiative kicked off with the launch of the Statement on ESG in credit ratings, still open to sign and so far supported by more than 150 investors with nearly $30 trillion of AUM, and 19 CRAs. There are three reports planned as part of the initiative and roundtables that the PRI is organising around the world for credit practitioners.

See below the work we have done so far, and contact us if you have any questions.

Webinar: the state of play

The PRI, BlueBay Asset Management and S&P Global Ratings discussed the state of play of integrating ESG factors in credit risk analysis. The webinar features a poll to uncover the main obstacles to integrating ESG factors in credit risk analysis as well as perceptions on how these factors feature in credit ratings.

Webinar: The Disconnects

Credit rating agency and investor representatives, including Hermes IM, Moody’s Investors Service, Neuberger Berman, Öhman and Pendal Group, discuss the challenges of ESG consideration in credit risk analysis with examples. This webinar recording merges two sessions featuring different speakers.

Webinar: Action Areas

The PRI examines action areas to consider transparently and systematically ESG factors in credit risk analysis, with active participants to the ESG in Credit Risk and Ratings Initiative, including Fitch Ratings, RAM Ratings, AXA, HSBC Global AM, Legal & General IM and Nomura AM. This webinar recording merges two sessions.

Ratings forums

To address some of the disconnects between investors and CRAs that have emerged so far, the PRI is organising roundtables across the globe aimed at credit risk analysts, fixed income portfolio managers and strategists (ESG analysts are welcome if accompanying their colleagues). CRA representatives will participate to explain how they incorporate ESG factors in their credit ratings and answer any questions attendees may have. The season kicked off with a panel session at PRI in Person in Berlin focused on ESG in sovereign credit risk, with speakers from Beyond Ratings, Global Evolution, the French Treasury and Moody's Investors Service.

  • The Hague (hosted by Aegon Asset Management)
  • Toronto (hosted by University of Toronto Asset Management)
  • Montreal (hosted by PSP Investments)
  • New York (hosted by Neuberger Berman)
  • London (hosted by Insight Investment)
  • Stockholm (hosted by Öhman)
  • Paris (hosted by AXA)
  • Frankfurt (hosted by Deutsche Börse)
  • San Francisco (panel session hosted by Wells Fargo Asset Management)
  • Sydney (hosted by the Financial Services Council)
  • Tokyo (hosted by Nikko AM)
  • Singapore (hosted by Eastspring Investments)
  • Hong Kong (hosted by HKIFA)
  • Cape Town (hosted by Investec)
  • San Francisco (PRI in Person – panel session: assessing ESG risks through credit ratings and sustainability scores)
  • São Paulo (hosted by Itaú Asset Management)
  • Santiago (hosted by Moneda Asset Management)
  • Beijing (hosted by the Asian Infrastructure Investment Bank)
  • Mexico City (hosted by Compass Group)

The ESG in Credit Risk and Ratings Initiative

The ESG in Credit Risk and Ratings Initiative receives support from The Rockefeller Foundation. The views expressed in the documents, webinars and during the events listed on this page are not necessarily those of The Rockefeller Foundation, its trustees, or its staff.

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