KBRA publishes Corporates Research – KBRA’s framework for integrating ESG risk management into credit ratings


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NEW YORK – (BUSINESS WIRE) – KBRA publishes research that focuses on the potential influence of environmental, social and governance (ESG) topics on KBRA’s analysis of corporate ratings. The report follows previous research that examined KBRA’s general approach to integrating ESG factors into the credit rating process through corporate, financial and government (CFG) ratings, which KBRA describes as managing ESG.

KBRA’s ESG management analysis framework for companies

As part of our due diligence process, KBRA assesses, where applicable, the overall effectiveness of the enterprise risk management framework to determine whether it adequately captures and addresses the plausible risks facing the entity. exposed. Where appropriate, we can analyze the awareness of management teams of existing, emerging and potential ESG risks, as well as the processes in place to identify, assess and respond to relevant ESG risks and opportunities. KBRA may also seek to compare the company’s processes, strategy and responses to these risks and opportunities against its peer group.

There is always an increased awareness of the dynamic ESG risks and opportunities that businesses face as the world moves towards a low carbon economy. This awareness has led to increasing pressure from lawmakers, regulators, investors, consumers, employees and other stakeholders to push companies to be more transparent about their ESG management practices and strategy. The investment community is also increasingly integrating ESG considerations into their investment decision-making processes, as regulators and lawmakers push for standardized and transparent ESG information for companies. Additionally, consumers and employees are demanding stronger ESG commitments from companies and pushing companies to focus on topical ESG issues such as sustainability, diversity and inclusion, and close the pay gap. between men and women. Companies that ignore the relevant ESG preferences of their main stakeholder groups may see a negative impact on their income and / or access to capital.

ESG issues are becoming more and more critical for the operational and financial performance of a company. Companies that are sensitive to mitigating and managing ESG risks and capitalizing on ESG opportunities will be better positioned to improve performance and profitability in a changing competitive business landscape. Since ESG risks and opportunities are often more pronounced for companies, an analysis of a company’s ESG management approach is an important part of KBRA’s corporate rating analysis.

Click on here to view the report.

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About KBRA

KBRA is a full service credit rating agency registered in the US, EU and UK, and is designated to provide structured finance ratings in Canada. KBRA ratings may be used by investors for regulatory capital purposes in several jurisdictions.

Shane Olaleye, CFA, Senior Director

+1 (646) 731-2432

[email protected]

Adam Gracely, Associate Director

+1 (646) 731-3329

[email protected]

Andrew Giudici, Senior Managing Director

+1 (646) 731-2372

[email protected]

William Cox, Senior Managing Director

+1 (646) 731-2472

[email protected]

Business development

Jason Lilien, Managing Director

+1 (646) 731-2442

[email protected]

Source: KBRA


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