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.
From 2020, the PRI publishes quarterly updates on the progress that CRAs are making to enhance the transparent and systematic integration of ESG factors in credit risk analysis, in keeping with their commitment to the ESG in Credit Risk and Ratings Statement.
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.
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.
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
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.
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.
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.
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.
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.