DBRS Morningstar's Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings
ESG risks include those related to climate change impacts mitigation and adaptation, environmental management practices and duty of care, working and safety condition, respect for human rights, anti-bribery and corruption practices, and compliance to relevant laws and regulations.
ESG risks are evaluated and considered when DBRS Morningstar assigns credit ratings.
While ESG risk factors span multiple sectors (Governments, Financial Institutions, Corporate Finance, and Structure Finance), the Corporate Finance sector is the most exposed to ESG risks, followed by Financial Institutions.
There are 17 ESG risk factors that DBRS Morningstar considers within its credit analysis
DBRS Morningstar issuer and transaction-specific credit ratings incorporate ESG risks for the life of the transaction/rating.