Company ESG Risk Rating - Sustainalytics (2024)

FAQs

What is a good Sustainalytics ESG score? ›

The ESG Risk Ratings are categorized across five risk levels: negligible (0-10), low (10-20), medium (20-30), high (30-40) and severe (40+).

Environmental, social, and governance (ESG) scores are an essential tool for investors to assess a company's sustainability and ethical performance. These scores typically range from 0 to 100, with a score of less than 50 considered relatively poor and more than 70 considered good.

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You can search by company name or ticker to view the ESG and climate risks and opportunities the company might face, including: Implied Temperature Rise, Decarbonization Targets, ESG Ratings, ESG Controversies, Business Involvement Screens and SDG Net Alignment.

We consider an ESG issue to be material within our rating if it's likely to have a significant effect on the enterprise value of a company.

A low ESG score is relatively poor. Though the scoring and rating scales vary between agencies, a score below 50 is bad, while a score above 70 is considered strong.

The ESG Risk Rating provides investors with an overall company score based on an assessment of how much of a company's exposure to ESG risk is unmanaged. The more of this risk that is unmanaged, then the higher the ESG Risk Rating score.

A strong ESG rating indicates that a company manages its ESG risks well in comparison to its peers, whereas a poor ESG rating indicates that the company has comparatively higher unmanaged ESG risk exposure.

Average – Average ESG scores are between 50-59. The company likely isn't implementing most ESG best practices, isn't actively working toward ESG goals, and has adverse environmental, social, or governance effects. Poor – A score of 50 or less is considered a poor ESG score.

As of 2023, the Luxembourg-based holding company, JAB Holding Co. SARL received an ESG risk rating of 3.3. This score makes JAB Holding Co. SARL the least likely to encounter environmental, social, and governance (ESG) related risks.

What is Amazon's ESG rating? ›

MSCI. MSCI publishes ESG ratings on 8,500 companies (14,000 issuers) globally, and employs over 200 analysts. The data from MSCI ESG research analysts are also used to produce MSCI ESG Indexes.

According to the Corporate Governance Institute, “an ESG score is a measurable statement of impact, grading success and challenges within the vast field that is environmental, social and governance.” Often used interchangeably with ESG ratings, ESG scores provide a snapshot of how effectively a company addresses ESG ...

Quantifying ESG risk involves understanding relevant ESG factors for an entity, understanding each factor's importance for the entity, assigning weights based on the importance, and then scoring an entity's initiatives and measures to mitigate the ESG risk.

To determine a company's score, Sustainalytics examines a company's full exposure to ESG risks based on its subindustry and unique company factors. Next, it gauges how well company management mitigates that risk. The final score reflects the total unmanaged risk.

The Morningstar Sustainability Rating helps investors evaluate funds based on environmental, social, and governance (ESG) characteristics. Ratings are expressed using a five-globe system, with one globe being the lowest score and five globes the highest.