Why ESG Risk Ratings and ESG Impact Ratings Are Not the Same

Finance5 months ago

Source: Why ESG Risk Ratings and ESG Impact Ratings Are Not the Same

The key difference between the ESG Risk Ratings and the ESG Impact Ratings is what they focus on and from which perspective. ESG Risk Ratings look inwards and assess how ESG factors impact a company's financial and operational performance. Their strategy is to identify vulnerabilities such as regulatory risks, reputational harm or environmental liabilities and see how well the company manages these risks.