November 3, 2021
Drilling for Clarity on How ESG Factors Influence Credit Ratings
Oil and gas sector analysts are scrambling to explain to energy companies the link between ESG scores and credit risk.The momentum behind ESG mandates and the conviction that companies committed to sustainability represent better investment risks have put pressure on ratings agencies to reconcile traditional credit ratings with ESG scores. This reconciliation has become more challenging as the agencies themselves begin to offer ESG scores or ratings as well as sustainability assessments. One approach is to explain in more detail…