Methodology for assigning ESG Ratings to Corporates

The Methodology presented is a short public version - Version as of September 2017

ESG rating represents the opinion of Rating-Agentur Expert RA GmbH on the environmental, social and governance strengths and weaknesses of a corporate.

The environmental, social, governance and total ESG ratings assigned by Rating-Agentur Expert RA GmbH are defined on the basis of allocating the company to one of 9 rating classes according to the following scale:

 

Rating
ESG
Rating
E
Rating
S
Rating
G
Rating
level
Score Rating Band
AAA[esg] AAA[e] AAA[s] AAA[g] Highest
level
89 - 100% A-rating band
The entity’s position is above average. Minor or no further actions are required, but the entity can benefit from any additional improvement or innovation.
AA[esg] AA[e] AA[s] AA[g] Very high
level
78 - 89%
A[esg] A[e] A[s] A[g] High
level
67 - 78%
BBB[esg] BBB[e] BBB[s] BBB[g] Moderately
high level
56 - 67% B-rating band
The entity’s position is average. The entity faces a bearable amount of risks, which can be mitigated with a reasonable number of further actions.
BB[esg] BB[e] BB[s] BB[g] Sufficient
level
44 - 56%
B[esg] B[e] B[s] B[g] Moderately
low level
33 - 44%
CCC[esg] CCC[e] CCC[s] CCC[g] Low

22 - 33%

C-rating band
The entity’s position is below average. Strong actions are required. The entity faces a significant amount of risks but there is a big room for improvement.
CC[esg] CC[e] CC[s] CC[g] Very low
level
11 - 22%
C[esg] C[e] C[s] C[g] Lowest
level
0 - 11%