Sustainability
How we integrate environmental, social and governance (ESG) factors and the UN Sustainable Development Goals (SDGs) into our analysis.
The Sustainable Development Goals
ESG MethodologyThe UN SDGs provide a shared blueprint for prosperity for people and the planet. We use the SDGs as a reference map to understand issuers’ long-term risks and opportunities that can affect credit quality and sustainability assessments.
No Poverty
End poverty in all its forms by ensuring income security and access to basic services.
Zero Hunger
Achieve food security, improved nutrition and promote sustainable agriculture.
Good Health and Well-Being
Ensure healthy lives and promote well-being for all at all ages.
Quality Education
Inclusive, equitable quality education and lifelong learning opportunities.
Gender Equality
Achieve gender equality and empower all women and girls.
Clean Water and Sanitation
Ensure availability and sustainable management of water and sanitation.
Affordable and Clean Energy
Ensure access to affordable, reliable, sustainable and modern energy.
Decent Work and Economic Growth
Promote sustained, inclusive and sustainable economic growth and productive employment.
Industry, Innovation and Infrastructure
Build resilient infrastructure, promote inclusive and sustainable industrialization and innovation.
Reduced Inequalities
Reduce inequality within and among countries.
Sustainable Cities and Communities
Make cities inclusive, safe, resilient and sustainable.
Responsible Consumption and Production
Ensure sustainable consumption and production patterns.
Climate Action
Take urgent action to combat climate change and its impacts.
Life Below Water
Conserve and sustainably use the oceans, seas and marine resources.
Life on Land
Protect, restore and promote sustainable use of terrestrial ecosystems.
Peace, Justice and Strong Institutions
Promote peaceful and inclusive societies, access to justice and effective institutions.
Partnerships for the Goals
Strengthen the means of implementation and global partnerships.
How ESG factors feed into our ratings
Environmental
- • Carbon intensity, transition and physical climate risks
- • Resource efficiency and pollution control
- • Biodiversity and land/water use impacts
Social
- • Health and safety; labor standards; diversity and inclusion
- • Customer welfare and product responsibility
- • Community impact and stakeholder relations
Governance
- • Board independence, oversight and incentives
- • Risk management, disclosures and controls
- • Business ethics and compliance
Our approach
We assess how material ESG factors affect an issuer’s capacity and willingness to meet its obligations. Where relevant, we map exposures and contributions to SDGs to articulate long-term risks and opportunities.
Details of indicators, weights and scoring are provided in our ESG Methodology.