From 2020, the PRI publishes quarterly updates on the progress that credit rating agencies (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.

This builds on the report series Shifting perceptions: ESG, credit risk and ratings, which documents the progress that CRAs have made since the launch of the initiative in May 2016.

A summary of the latest developments is in the excel file below. It allows fixed income investors to use the CRA latest resources as a tool in their ESG integration process and create opportunities to continue the investor-CRA dialogue that the PRI initiated.

The excel file includes:

  • Reports: a sample of research reports produced by CRAs related to ESG consideration (sectoral and thematic) and credit risk.
  • Rating actions: a selection of CRAs’ rating opinions that have ESG factors among the key drivers underpinning the ratings’ rationale or that contain a dedicated ESG paragraph.
  • Events: a list of events that have either been organised by CRAs or in which they have participated as speakers on ESG factors and credit risk.

Please also refer to the first tab of the file for instructions on how to use it.

This is not a commercial platform for CRAs. It is also important to recognise that the CRAs supporting the initiative vary in size and are at different stages of their development in making ESG factors more explicit in their methodology, analysis and credit risk assessments. Not all of them will have regular quarterly inputs.  and we are very grateful to those who have submitted their contribution this quarter, despite the ongoing challenges caused by the spread of Covid-19.

The latest update comes at a very challenging time, in the midst of the coronavirus topic. Some CRAs have set up dedicated webpages free of charge containing research reports and rating actions. Some information is below in alphabetical order by CRA:

The PRI hopes that you find this new tool useful and welcomes feedback.

For questions please contact:

Carmen Nuzzo
Head of Fixed Income

Sixtine Dubost
Analyst, Investment Practices