Industry Research: Corporate

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Credit Spotlight: Environmental, Social and Governance Considerations and Issuer Credit Ratings
Special Reports Corporate South Africa
  • Industry Research: Corporate
  • Year : Aug 2021
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Summary

GCR’s ratings factor in a myriad of environmental, social and governance (ESG) considerations into issuer credit ratings. The below highlights the key considerations, broken down by criteria/sector/factors. Overall, GCR believes that ESG considerations can interact with the GCR ratings criteria, and therefore ultimately to the GCR issuer ratings

Additional Information

For purpose of clarity, GCR use the following definitions for ESG:

• Environmental: includes an entity’s use of renewable energy sources, waste management program, raw material sourcing, handling of potential problems of air or water pollution arising from its operations.

• Social: includes the company’s relationship with its employees, customers, and communities (stakeholder engagement and impact).

• Governance: refers to how the company is managed by its executives and full and honest financial reporting.

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