S&P Global has dropped the environmental, social, and governance (ESG) scale it launched in 2021. The tool was intended to score publicly rated companies on ESG factors when assessing their credit quality.
One of the world’s largest raters of corporate debt, S&P Global said the decision would take effect “immediately.”
NTD spoke to the director of research firm Consumers’ Research, Will Hild, who explained in detail why the ESG rating scale has not worked since its introduction.