Fitch Ratings Launches ESG Scores to Show Impact on Credit

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Fitch is the first credit rating agency (CRA) to systematically publish an opinion about how ESG issues are relevant and material to individual entity credit ratings. Fitch is initially making all of its ESG Relevance Scores available in the public domain, and will then maintain and publish the scores on an ongoing basis as an integrated part of its entity credit research.

Fitch Ratings, a leading provider of credit ratings, commentary and research, today announced the launch of a new integrated scoring system which shows how environmental, social and governance (ESG) factors impact individual credit rating decisions. They are sector-based and entity-specific.

Using a standardized and transparent scoring system, Fitch is introducing ESG Relevance Scores across all asset classes, starting with over 1,500 non-financial corporate ratings. Fitch’s ESG approach fills a market gap by publicly disclosing how an ESG issue directly affects a company’s current credit rating.

Fitch’s primary mandate is to provide insightful and timely credit opinions for investors which are transparent and capable of being both challenged and defended. Fitch views the introduction of ESG Relevance Scores as a substantial step forward in enhancing transparency for investors, and for the broader discussion around ESG and credit. Fitch’s approach provides investors with the opportunity to examine, discuss and challenge opinions about how ESG factors have impacted rating decisions.

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