ESG rating definition

ESG rating means an opinion, a score or a combination of both, regarding an entity, a financial instrument, a financial product, or an undertaking’s ESG profile or characteristics or exposure to ESG risks or the impact on people, society and the environment, that are based on an established methodology and defined ranking system of rating categories and that are provided to third parties, irrespective of whether such ESG rating is explicitly labelled as ‘rating’ or ‘ESG score’;
ESG rating means a rating that assesses the Environmental, Social and/or Governance (“E”, “S” and/or “G”) qualities of an issuer or its Securities.
ESG rating means an opinion, a score or a combination of both, regarding a rated item’s profile or characteristics with regard to environmental, social and human rights, or governance factors or exposure to▌ risks or the impact on environmental, social and human rights, or governance factors, that are based on both an established methodology and a defined ranking system of rating categories▌ , irrespective of whether such ESG rating is explicitly labelled as ‘ESG rating’, ‘ESG opinion’ or ‘ESG score’;

Examples of ESG rating in a sentence

  • Sustainable characteristics are defined as an ESG rating equal or superior to BBB for developed market issuers and equal or superior to BB for emerging market issuers.

  • This ESG rating takes into account the companies’ main negative impacts in terms of sustainability, or Principal Adverse Impacts (carbon emissions, energy consumption, water consumption, waste production) and the risks likely to affect their own sustainability, or Sustainability Risks (regulatory and physical risks, reputational risk through, among other factors, monitoring of controversies).

  • The company’s overall ESG rating summarises the scores for each pillar according to the following weighting: 30% for Environment and Social and 40% for Governance.

  • The analysts responsible for monitoring each stock determine an internal ESG rating based on both a quantitative (energy intensity, staff turnover rate, board independence rate, etc.) and qualitative (environmental policy, employment strategy, director competence, etc.) approach.

  • An issuer’s ESG rating is based on an absolute rating scale of 0 to 100, with 100 being the highest rating.


More Definitions of ESG rating

ESG rating means any rating or assessment in relation to the Group assigned from time to time to the Group by the ESG Rating Agency as set out in an ESG Report.
ESG rating means a summary judgment, complementary to the traditional rating, that assesses the long-term sustainability and the future social and environmental impact of an asset. The ESG Rating will be assigned with reference to an Underlying or to the issuer of an Underlying by a leading rating agency operating in the sustainability field.
ESG rating. The following are key performance indicators on ESG factors related to an investee company that are included in the ESG cockpit, which is a proprietary tool used as part of the ESG rating system discussed below, in the process to identify a universe of investable companies through a systematic process which relies on information from underlying companies (and therefore promoted as environmental and/or social characteristics by the Master Fund):
ESG rating has the meaning specified in Section 2.19.
ESG rating means a rating that assesses the Environmental, Social and/or Governance (“E”, “S” and/or “G”)
ESG rating means an opinion, a score or a combination of both, regarding a rated item’s profile or characteristics with regard to environmental, social and human rights, or governance factors or exposure to risks or the impact on environmental, social and human rights, or governance factors, that are based on both an established methodology and a defined ranking system,
ESG rating means the ESG rating assigned to WPM from time to time by the ESG Agency.