17 Sep 2019 Credit rating agencies join battle for ESG supremacy

As the Financial Times pointed out, a vast amount of deals occurred recently that involved ESG rating agencies: the demand for sustainability and corporate governance data has risen among investors and regulators. Today, Financial Times announced that  two of the three main credit rating agencies will now provide ESG scores on companies, in addition to their traditional assessments.

In fact, during last years there have been multiple mergers and acquisitions with companies specialized in ESG analysis and rating that allowed credit risk agencies to enter this new market. For example, Moody’s acquired a majority stake in Vigeo Eiris in March 2019, while S&P have been partnering for years with RobecoSAM.

Financial Times confirms the increasingly importance acquired by ESG ratings in giving a complete and reliable judgment on the companies, highlighting also some differences that occur in the judgement given by traditional rating companies and an independent ESG rating company.

For further information, see the article of Financial Times as of September 17, 2019:

https://www.ft.com/content/59f60306-d671-11e9-8367-807ebd53ab77

https://ir.moodys.com/news-and-financials/press-releases/press-release-details/2019/Moodys-Acquires-Majority-Stake-in-Vigeo-Eiris-a-Global-Leader-in-ESG-Assessments/default.aspx

http://vigeo-eiris.com/vigeo-eiris-and-moodys-investors-service-join-forces-to-celebrate-the-recognition-and-the-value-of-non-credit-evaluations/

https://www.ansa.it/sito/notizie/economia/business_wire/news/2019-04-15_1151925304.html