Moody’s is the latest rating agency to move on environmental issues, claiming it has a first-of-its-kind tool to generate real-time predicted environmental, social, and governance (ESG) scores for millions of public and private small- and medium-sized enterprises (SMEs) worldwide.
Based on a model derived from Moody’s proprietary ESG scoring methodology for large-cap corporates, the ESG Score Predictor provides financial institutions with essential quantitative data for portfolio and risk management and helps companies monitor ESG risk across their global supply chains.
“SMEs are the backbone of every economy; they drive innovation and power global supply chains,” said Andrea Blackman, global head of Moody’s ESG Solutions. “Alongside portfolio analysis and analyst-driven SME assessments, the ESG Score Predictor adds a unique, integral component to our comprehensive suite of cutting-edge solutions to help investors and companies leave no stone unturned when identifying and analysing ESG risks and opportunities.”
Assessing companies’ exposure to ESG risks requires comparable and standardized metrics. Limitations in company disclosures continue to affect data quality and company coverage, especially in the SME space. The ESG Score Predictor leverages state-of-the-art advanced analytics to provide 56 ESG scores and sub-scores for any given company using location, sector, and size.
Customers can access approximately 140 million company ESG scores on Moody’s Orbis database, Procurement Catalyst and Credit Catalyst platforms, via an application programming interface (API), or leverage the ESG Score Predictor model with their in-house data to score their portfolios.