Ratings of environmental, social and governance factors (ESG ratings) provide an opinion on the sustainability profile or characteristics of a company or financial instrument that is exposed to the risk of threatening sustainability or impact on society and/or the environment.

The aim of this initiative is to improve the reliability and comparability of ESG assessment.

It also aims to ensure that credit rating agencies incorporate Relevant ESG risks into credit ratings that assess the creditworthiness of a company or financial instrument. (More on ec.europa.eu)