ESG Data Guide 2023

Sustainable Fitch - Sustainable Fitch ESG Ratings

Data category

  • Environmental data
  • Social data
  • Governance data
  • Ratings
  • Analyst opinions

The data offers solutions for:

  • Environmental impact analysis and insight
  • Investment decisions and portfolio insight
  • Reporting: EU Regulations
  • Reporting: Impact
  • Reporting: SFDR
  • Reporting: UN SDGs
  • Social impact analysis and insight

Who are the data users?

  • Investors
  • Financial institutions

Brief description of the data offering

Sustainable Fitch ESG Ratings provide a holistic ESG analytical tool that helps the financial community effectively discern the ESG quality of financial instruments and entities to make smarter, more informed ESG investing decisions. ESG Ratings provide consistency, granularity, and transparency that has never existed in the marketplace before through ESG Framework Ratings, Entity Ratings, and Instrument Ratings. Ratings are conducted by analysts at the instrument level and are monitored, at minimum, annually.

Framework Ratings evaluate financial instruments’ impacts on the environment and society based on Use of Proceeds or KPIs, where applicable, as well as strength and governance of the instrument’s overall framework. GSS bonds are assessed based on factors of: use of proceeds, project evaluation and selection, management of proceeds, and reporting and transparency. Sustainability-linked bonds are assessed based on factors of: KPI selection, performance targets, bond features, reporting, and verification.

Entity Ratings analyse the impacts, both positive and negative, of an entity’s overall ESG policies, procedures and outcomes, as well as assessing specific business activities. An entity’s business activities are assigned a rating on the ESG Ratings scale of 1-5 as well as a qualitative opinion from Sustainable Fitch analysts based on the extent to which they impact the environment and society. Entities also receive overall Environmental, Social and Governance ratings based on entity’s performance, commitment, and integration of ESG considerations into its business, strategy and management.

ESG Instrument Ratings balance the ESG Framework Rating with the issuer’s ESG Entity Rating allowing for an absolute ESG assessment of instruments that can be compared globally across a variety of issuers, sectors and geographies, including comparison of multiple issuances by a single issuer. The purpose of an Instrument Rating is to provide a contextualized rating for instruments issued by entities with ESG qualities that may differ from the issuance itself.

Where and how do you source your data?

The main sources of data used by Sustainable Fitch to assign ESG Ratings are: financial and non-financial statements of an entity, which are generally in the public domain, including the entity’s annual reports, the entity’s public filings, and a bond’s documentation, ESG framework, and impact reporting.

ESG Ratings are also available on a solicited basis for issuers, in which case data is also sourced directly from the issuer. All interactions with issuers, either for solicited or unsolicited ratings, is noted in the dataset and reports.

What is the cost for your data offering?

Dependent on client size, use case and other factors.

Contacts

john.diebold@sustainablefitch.com

Corporate Statements by Sustainable Fitch

Guide entries by Sustainable Fitch