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Sustainable Finance: Entity-Level ESG Evaluation

S&P Global Ratings ESG Evaluation

S&P Global Ratings launched its ESG Evaluation in 2019 based on extensive and direct client engagement to develop a product that meets needs of issuers, investors, and intermediaries. ESG Evaluation is for companies looking to help their investors gain a better understanding of company strategy, purpose, and management quality. The forward-looking ESG Evaluation is a cross-sector, relative analysis—at the entity level—of a company’s ability to operate successfully now and in the future.

S&P Global Ratings’ team of analysts is knowledgeable about the entity’s business and industry and utilizes public and private data, including data from the CSA and Trucost, for their analysis. The analysis is grounded in how ESG factors could affect stakeholders and potentially lead to a material direct or indirect financial impact on the entity. The final output is a fact-based reflection of the entity’s sustainability efforts.

+ = ESG Evaluation Preparedness ESG Prole

The ESG Profile 


Reflects the entity’s current activities and starts by applying the outputs from the S&P Global Ratings ESG Risk Atlas to the entity’s sector and regional footprint. Our company analysis reflects S&P Global Ratings’ and the Company’s CSA view of the extent to which the company has mitigated these risks.

The Preparedness Assessment 

Evaluates the entity’s capacity to anticipate and adapt to a variety of long-term plausible disruptions.

Final ESG Opinion


Provides a relative overall ESG Opinion that allows comparison with other entities globally, including sector peers.

ESG Profile Development

> > > Risk Atlas Region and sector macroanalysis Corporate Sustainability Assessment (CSA) Entity-specific analysis by credit analyst and ESG team based on CSA data Meeting In-person assessment Adjustments Analytical judgment

ESG Profile Factors

Environmental Greenhouse Gas Emissions Social Workforce & Diversity Governance Structure & Oversight Safety Management Code & Values Waste & Pollution Land Use Communities Financial & Operational Risks Water Use Transparency & Reporting Customer Engagement

The ESG Evaluation combines quantitative and qualitative analysis and considers both the near-term and longer-term ESG risks and risk mitigants for the subject company/entity

Updated Information