Morningstar DBRS Brings ESG into Focus

Morningstar DBRS evaluates and incorporates ESG factors in the assessment of its credit ratings across Governments, Financial Institutions, Corporate Finance, and Structured Finance. We have taken a global issue and provided a global solution, looking at ESG in a single approach across product areas and countries.

Morningstar DBRS' Approach to Environmental, Social, and Governance Factors in Credit Ratings

ESG factors include those related to climate change impacts, mitigation, and adaptation; environmental management practices and duty of care; working and safety conditions; respect for human rights; anti-bribery and corruption practices; and compliance with relevant laws and regulations.

  • ESG Factors

    ESG factors are evaluated and considered when Morningstar DBRS assigns credit ratings.

  • Exposure

    While ESG factors span multiple sectors (Governments, Financial Institutions, Corporate Finance, and Structure Finance), the Corporate Finance sector is the most exposed to ESG factors, followed by Financial Institutions.

  • 17 ESG Factors

    There are 17 ESG factors that Morningstar DBRS considers within its credit analysis

  • Ratings

    Morningstar DBRS issuer and transaction-specific credit ratings incorporate ESG factors for the life of the transaction/rating.

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ESG Framework by Rating Sector

Morningstar DBRS incorporates 17 different ESG factors into its analysis. Find more detail on which ones are appropriate for each rating sector, ESG related commentaries, and credit ratings where ESG factors have played a role.
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ESG Framework by Sector

The following section provides a high-level overview of how we incorporate ESG factors and related considerations in our analytical framework when assigning or maintaining credit ratings.

Governments
Financial Institutions
Corporate Finance
Structured Finance

ESG Factors by Sector

The primary ESG factors listed in Exhibit 1 and their implications across the various sectors are discussed in the examples below. In some cases, investors in a given sector (Structured Finance, for example) may be exposed to passed-through ESG factors of guarantors, key counterparties, or the underlying financial obligations of entities in other sectors.

Environmental
Social
Governance

Morningstar DBRS is a Signatory of the Principles for Responsible Investment

The PRI are a voluntary and aspirational set of principles for the investment market offering a set of possible actions for incorporating Environmental Social and Governance (ESG) issues into practice. Morningstar DBRS is proud to be part of this strong market initiative to ensure the inclusion and transparency of ESG factors in financial markets and investment decisions.
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ESG Contacts

Business Development

Media