S&P ditches ESG debt rating scores amid criticism

'Effective immediately'

S&P Global will no longer give scores to corporate borrowers on ESG factors, amid criticism from political groups and questions about their usefulness.

Since 2021 the debt rating agency has used a scoring system of one to five to denote a company's ESG-related risk. Five is the lowest grade exposure, one is the highest. However, last week S&P changed tack. In a statement on Friday (4 August), it said that it will offer ESG analysis in text only, not numbered scores, "effective immediately". The rating agency said: "We have determined that the dedicated analytical narrative paragraphs in our credit rating reports are most effective at providing detail and transparency on ESG credit factors material to our rating analysis." EFAMA: E...