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TRUCOST: S&P Rating ESG Evaluation
Today, investors who deliberately apply an ESG lens to investing are growing rapidly worldwide as more come to realize the risks of separating such issues from business fundamentals. The lack of consistency, standards, and forward view of the majority of ESG information providers result in widespread difficulties for investors looking to integrate ESG factors into their investment decisions.
S&P Global Ratings ESG Evaluation is for companies looking to help their investors gain a better understanding of their strategy, purpose and management quality. The forward-looking ESG Evaluation, is a relative analysis of their ability to operate successfully now and in the future using both public and private data confidentially provided to our team of analysts rooted in a company’s business and industry. As a result, the final output S&P Global Ratings' assessment of an entity's sustainability efforts that may help them attract short and longer-term investment as needed.
The Importance of ESG Evaluation for Investors
- Gain deeper insights into the risk and opportunities facing businesses you are investing in
- Balance risk adjusted financial returns with sustainability benefits
- Meet your clients' needs and requests, and satisfy your ESG mandates
- Adhere to climate finance and regulatory investment targets and disclosure standards
- Investors believe ESG factors could translate to financial impact over a long term time horizon, for both fixed income and equity investments
- Investors believe that integrating ESG could help improve the investment outcome in terms of return enhancement or risk reduction
The Importance of ESG Evaluation for Entities
- Help your investors better understand your company’s strategy, corporate purpose, and management quality
- Benchmark your performance to understand your areas of strength and weakness and enhance your risk management processes
- Differentiate your sustainability efforts from your peers in the eyes of your investors and the community
- Send a strong, pro-active message to stakeholders and appeal to more women and millennials as employees and customers
- Positioning your entity well in ESG could help you access a broader source of capital
- Be proactive and be prepared as more and more investors are requesting specific objectives around an entity’s ESG strategies and monitoring their progress
S&P Global Ratings ESG Evaluation
S&P Global Ratings ESG Evaluation is a cross-sector, relative analysis of an entity’s capacity to operate successfully in the future and is grounded in how ESG factors could affect stakeholders and potentially lead to a material direct or indirect financial impact on the entity.