ESG Factors in Auto ABS: Social Factors

This is the second in a series of commentaries that will discuss the environmental, social, and governance (ESG) factors that could affect DBRS Morningstar asset-backed security (ABS) credit ratings relating to notes backed by auto loans and leases. In this commentary, DBRS Morningstar discusses four relevant social factors that it considers in its ratings analysis, namely (1) social impact of products and services, (2) human capital and human rights, (3) product governance, and (4) data privacy and security. We will provide additional background and trends on the important ESG factors affecting auto ABS investing.