ESG ratings and their role in the transition to sustainability
SustainAbility School #74
By attending this webinar, you will learn about:
Definition of ESG Ratings: ESG (Environmental, Social, Governance) ratings provide a quantitative assessment of an organization's efforts in sustainability and social governance;
Types of ESG Ratings: ESG Risk Rating: Evaluates a company's exposure to ESG risks and its management (e.g., Sustainalytics, S&P), ESG Impact Rating: Measures a company's impact on ESG factors (e.g., Refinitiv, Moody’s), ESG ratings can be “backward-looking” (historical data) or “forward-looking” (future goals);
Importance of ESG Ratings: Validates performance through external rating agencies, Enables comparability across regions and industries, Assists in risk management and enhances investor appeal;
Who Calculates ESG Ratings: Specialized agencies analyze public and, in some cases, non-public data from companies to assign ESG ratings;
Necessity of ESG Ratings: Responds to investor, consumer, and regulatory pressures, Helps in mitigating climate-related risks, Provides companies a metric to improve their sustainability efforts;
Process of Obtaining ESG Ratings: Ratings based on public information only, Ratings based on both public and private information, with feedback and collaboration;
Banca Transilvania’s ESG Achievements: Sustainalytics ESG Score: 17 (low risk), positioning it in the top 15% of analyzed companies, Refinitiv Score: 83/100 (A-), ranking high globally, with excellent scores in innovation, HR, and governance, CST Index Score: 91/100 for sustainability reporting transparency in Romania;
Challenges in ESG Ratings: Lack of regulatory oversight for rating agencies, Variability in methodologies among rating agencies, Inconsistent distribution and predictive power of ratings;
SustainAbility School este un program de educare dedicat exclusiv angajaților din organizațiile membre ale Ambasadei Sustenabilității în România prin programul Coaliția România Sustenabilă.