ESG Factors for Financial Institutions, Part One: Environmental Factors

This commentary addresses the environmental risk factors that could have a bearing on DBRS Morningstar’s credit ratings for banks. It follows on from the publication on February 3, 2021 of DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings. The Criteria identifies 17 ESG risk factors, of which 12 factors (three environmental, six social, and three governance) can be applied to banks. The social and governance factors relevant for banks will be discussed in separate commentaries.