Fitch launches ESG credit rating ‘relevance’ scores

    Fitch Ratings has introduced a scoring system to show how environmental, social and corporate governance (ESG) factors affect the agency’s individual credit rating decisions.

    The ESG “relevance” scores “transparently and consistently display both the relevance and materiality of ESG elements to the rating decision”, Fitch said.

    It claimed the move filled a market gap by publicly disclosing how an ESG factor directly affected a company’s current credit rating.

    Fitch also declared that it was the first credit rating agency “to systematically publish an opinion about how ESG issues are relevant and material to individual entity credit ratings”.