Official ESG Evaluations from S&P Coming Soon to Insurance Sector

If you’re among those who regard “environmental, social and governance” as just another in a long line of trendy buzz-phrases, then you may want to rethink. ESG standards, which companies use to highlight operations that interest socially conscious investors, will now be officially evaluated and measured by S&P Global Ratings. The ratings giant on April 11 announced the roll out of its ESG Evaluation, describing it as “a new benchmark that provides a cross-sector, relative analysis of an entity’s capacity to operate successfully in the future.” According to S&P, the ratings are based on how ESG factors could impact a company’s stakeholders and potentially lead to a material financial impact. The ESG Evaluation is a separate product from credit ratings and will be conducted at the request of the companies themselves, according to Mike Ferguson, director of sustainable finance for S&P Global Ratings.

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