S&P Global discards ESG alphanumeric scale

S&P Global has decided to discontinue the alphanumeric scale introduced in 2021 for assessing the ESG (environmental, social, and governance) factors affecting credit quality in certain sectors and asset classes. Instead, the company will rely on detailed narrative paragraphs within its credit rating reports to offer transparency and insight into ESG credit factors relevant to its analysis. This change, announced on Friday, will be implemented without delay. As a major player in corporate debt rating, S&P Global aims to maintain the effectiveness of its reporting while focusing on comprehensive ESG considerations.