DBRS Morningstar Brings ESG into Focus

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

    ESG risks are evaluated and considered when DBRS Morningstar assigns credit ratings.

  • Exposure

    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.

  • 17 Risk Factors

    There are 17 ESG risk factors that DBRS Morningstar considers within its credit analysis

  • Ratings

    DBRS Morningstar issuer and transaction-specific credit ratings incorporate ESG risks for the life of the transaction/rating.


ESG Framework by Sector

The following section provides a high-level overview of how ESG risk factors and related considerations affect
Governments, Financial Institutions, Corporate Finance and Structured Finance sectors from an analytical perspective.

ESG Risk Factors by Sector

Both issuer and transaction-specific ratings incorporate ESG and other risks for the life of the rating. The primary ESG risk
factors listed in Table 1 and their implications across the various sectors are discussed in the examples below.

ESG Framework by Rating Sector
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ESG Contacts

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