ESG Report and Rating

Focus on improvement strategies and development ESG strategies and make report based on International Standard – Environmental, Social and Governance (ESG) metrics are the three central themes for measuring the sustainability and positive impact of an investment or business. While these criteria help to better determine the future performance of companies, a true and accurate assessment has been difficult to access in the private markets.

Our ESG Ratings and Advisory service helps investors unlock real value and drive transformational change by offering a high quality, global, independent, end-to-end service for the private markets. By deploying intelligent ESG data and insights we aim to drive capital towards ESG performance while influencing significant behavioral change.

Why ESG?

  • Purpose is the path to profit. Responsible business management and risk mitigation leads to a long-term competitive advantage.
  • Climate change. Every business has a part to play. We need fast, innovative solutions to halt the accelerating damage to our planet.
  • Regulatory and fiduciary duty. National and supranational governments and unions are regulating across the ESG universe. In tandem, investors are demanding better ESG disclosure. Be proactive and anticipate these changes
  • Shift to purpose. Employees increasingly want to work for a company that proves they are purpose-driven with excellent governance. Recruitment, retention and motivation are key.

The benefits of ESG ratings for businesses

First of all, an outstanding ESG rating reflects market recognition of the company’s social responsibility efforts and performance, which helps to improve brand image. In addition, many European and American financial institutions have taken the ESG rating into consideration in investment screening process. Therefore, a good ESG rating can further help companies to attract investment and lower the cost of financing.

The existing ESG rating systems on the market

There are various ESG rating systems set up by different rating agencies, some of the rating systems are ESG performance-based while some of them are ESG risk-based. Right now, the renowned ESG rating agencies in the world include EcoVadis, MSCI, RobecoSAM (acquired by Standard & Poor’s in 2020), CDP Global Environmental Information Research Center, FTSE Russell, etc.

How to improve ESG rating

When the company decides to join the ESG rating scheme, it needs to establish a sound ESG governance structure to ensure that there are sufficient and effective ESG management policies and systems, internal controls, implementation measures in order to achieve good ESG performance as well as forming a loop to continuously improve and optimize the performance. On the other hand, before submitting ESG data to rating agencies, companies should also review the data to ensure that it clearly, accurately and effectively addresses the rating criteria.