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 ratings agencies (CRAs) and investors to cultivate a common language, discuss ESG risks to creditworthiness and bridge disconnects.

The initiative kicked off with the launch of the Statement on ESG in Credit Risk and Ratings, still open to sign and so far supported by over 160 investors with more than $30 trillion of AUM, and 23 CRAs. Four reports have been published as part of the initiative and over 20 forums organised around the world for credit practitioners.

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


Broadening the outreach to ESG

Broadening the outreach to ESG information providers

As well as continuing to engage with CRAs, the results from this survey will inform future discussions with ESG information providers, to help fixed income investors to best use available tools and analysis for ESG integration in their investment decisions.


ASG en riesgos de crédito y calificaciones en LatAm

This webinar explores relevant ESG credit risks in Latin America and their possible evolution, with the participation of credit analysts from Fitch Ratings, Moody’s Investors Services and S&P Global Ratings.


ESG in credit risk analysis: the rise of the ‘S’ factor

This webinar explores to what extent social factors can impact an issuer’s ability to repay its debt, how to measure them and whether their relevance will continue to increase going forward, compared to E and G issues.


COVID-19 crisis: a test for EM sovereign bond investors

This webinar looks at the consequences for emerging market credit risk, the opportunities for a ‘greener, smarter and fairer’ recovery – as proposed by the IMF – and what role sovereign bondholders can play.


ESG, credit risk and COVID-19

Issuers’ crisis preparations and responses, and bondholder engagement, are two key areas of focus when considering the credit implications of the COVID-19 pandemic through an environmental, social and governance (ESG) lens.


CRA quarterly updates

To see the progress CRAs are making to enhance the integration of ESG factors in credit risk analysis, in keeping with their commitment to the above Statement, check the PRI’s quarterly updates.

COVID-19 - The cras


ESG in credit risk analysis: the implications of COVID-19 - part 1


Andrew Davison (Moody’s), Andrew Steel (Fitch Ratings), Mike Wilkins (S&P Global Ratings), Carmen Nuzzo (PRI)

COVID-19 - The bondholders


ESG in credit risk analysis: the implications of COVID-19 – part 2


Mahesh Jayakumar (MFS), Joshua Linder (APG Asset Management), Steven Ruh (Neuberger Berman), Carmen Nuzzo (PRI)

COVID-19 - The debt issuers


ESG in credit risk analysis: the implications of COVID-19 – part 3


Joss Tantram (WBCSD) Pär Lageryd and Lena Hök (Skanska), Pasi Kyckling (Stora Enso), Carmen Nuzzo (PRI)


Bringing credit analysts and issuers together: Paris workshop

The PRI’s ESG in credit risk and ratings project is for the first time bringing voices from the corporate side into the conversation on how to better incorporate EGS factors into credit analysis.


Watch the video on the initiative – phase one

Highlights of the milestones of the initiative since its start. The project is the first of its kind because of its credit focus and scale, with 21 forums held in 15 countries.

Emerging market forum colour- full_title

Takeaways from the EM forums

The emerging market forums completed the global series that gathered credit practitioners from investors and CRAs to discuss ESG topics.


The financial materiality of ESG factors for fixed income investors

In collaboration with SASB, and through case studies, this webinar looks at how ESG financial materiality varies by sectors and what is relevant for bond investors

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.

ESG in credit risk and ratings forums

To address some of the disconnects between investors and CRAs that emerged at the start of the initiative, the PRI organised roundtables across the globe aimed at credit risk analysts, fixed income portfolio managers and strategists (ESG analysts were welcome if accompanying their colleagues). CRA representatives participated to explain how they incorporate ESG factors in their credit ratings and answered questions.

  • Berlin (PRI in Person – panel session: ESG in sovereign credit risk)
  • 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) - video recording
  • 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 - audio recording)
  • 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)
  • Paris (PRI in Person – panel session: from disconnects to action – audio recording)

From October 2019, the ESG in Credit Risk and Ratings initiative is funded by the Gordon and Betty Moore Foundation through the Finance Hub, which was created to advance sustainable finance.