Methodology for assigning ESG Ratings to Corporates
ESG Corporate Methodology 
- Version 4 as of July 2022
ESG Corporate Methodology - Version 4 as of July 2022 (in Russian)
An environmental, social and governance (ESG) rating represents the opinion of the Agency on how well corporations manage their exposures to environmental, social and governance risks through policies, programs, disclosures and actions. It also represents the Agency’s opinion on how the entity takes advantage of opportunities related to environmental and social factors.
This methodology describes the system of factors and sub-factors used in the process of assigning ESG ratings to corporates. The overall ESG rating is also separated into environmental (E), social (S) and governance (G) ratings. This allows the users of this methodology not only to understand the overall ESG position of the company, but also the individual exposures and mitigation of E, S and G risks.
Archive
Version 3 - Version as of September 2019
Version 2 - Version as of November 2018
Version 1 - Version as of September 2017
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:
| 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% |
