Major Credit Rating Agency Drops ESG Scores Amid Backlash to Corporate Wokeism

Contact Your Elected Officials
The Epoch Times Header

Rating agency S&P Global has dropped its use of environmental, social, and governance (ESG) scores to assess corporate borrowers amid questions over the usefulness of such metrics and amid broader backlash to “woke” agendas being pushed in board rooms across the United States.

Since 2021, the credit rating agency has rated companies on a scale from 1 (best) to 5 (worst) in each of the three components of ESG. But now, S&P Global’s ESG scoring system is being dropped in the rating agency’s credit quality assessments of publicly rated firms.

“Effective immediately, we are no longer publishing new ESG credit indicators in our reports or updating outstanding ESG credit indicators,” the rating agency announced in a statement obtained by The Epoch Times.

The rating agency hinted that lack of effectiveness was the rationale for dropping the ESG scoring system—which has been the subject of sharp criticism from conservatives who see it as a manifestation of leftist or even neo-Marxist agendas in corporations.

“We have determined that the dedicated analytical narrative paragraphs in our credit rating reports are most effective at providing detail and transparency on ESG credit factors material to our rating analysis, and these will remain integral to our reports,” S&P Global said in the statement.

A Bloomberg report citing a “person close to the process” who declined to be identified indicated that the change was prompted by “expressions of confusion” on the part of investors who rely on the agency’s credit ratings to inform their investment decisions.

A request for clarification from The Epoch Times as to why the ESG scores were being dropped wasn’t returned by press time.

‘Not That Reliable’

Patrick Welch, chief ESG and ratings policy officer at Kroll Bond Rating Agency, told Bloomberg that confusion is the likely chief culprit driving the change at rival S&P Global.

By using a five-point rating scale, “you’re putting one scoring system—an ESG one—inside another scoring system, which is the credit rating,” Mr. Welch told the outlet.

By Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Government Shutdown, Health Care, Tax Breaks=Perfect Storm

The shutdown over cuts to health subsidies for the poor stems from Trump’s OBBB plan, which critics say funneled trillions to the wealthy.

3I/Atlas Comet or UFO Arrives Tomorrow!

The 3I/Atlas object is hurtling toward our solar system on a strange path and composition, set to pass behind the sun, obscuring visual and radio tracking.

‘I’d Be Finished’: Vaccine Researcher Trashes Own Study to Save Career

Most doctors comply with the system, following orders to keep their jobs, income, and prestige, even if it means setting aside independent judgment.

Kamala, Please Run Again

Kamala Harris hinted she wants to run for President in 2028, despite poor poll numbers and her loss in 2024. If she runs, the big winners will be the GOP.

Rosie O’Donnell vs. Her Therapist

Rosie O’Donnell's therapist attempted to artfully introduce to her client to the possibility that Rosie's outrage might be performative. It didn’t take.

Federal Judge Extends Order Blocking Firings During Shutdown

A federal judge on Oct. 28 indefinitely blocked the Trump administration from firing federal employees during the ongoing federal government shutdown.

Los Angeles Dethrones Chicago as ‘Rattiest’ US City

Los Angeles has dethroned Chicago as the “rattiest” U.S. city after more than a decade, becoming the new top haven for rodents.

Prediction of Climate Catastrophe Loses Some of Its Strongest Advocates

Bill Gates says the “doomsday view” of climate catastrophe is wrong, signaling a major shift in the global warming debate.

DOJ to Review Biden’s Use of Autopen for Pardons

The DOJ will review the Biden administration’s use of an autopen for thousands of pardons, U.S. Attorney General Pam Bondi confirmed Tuesday.

Trump, Japanese PM Sign Critical Minerals, Rare Earths Deal

The U.S. president visited Tokyo on the second leg...

Trump Hikes Canada’s Tariffs by 10 Percent for Not Pulling Anti-Tariff Ad Immediately

Trump announced he will increase tariffs on Canada by 10% after ad by provincial government of Ontario misrepresented President Reagan’s speech on tariffs.

Trump Rolls Back Emissions Rules on Copper Smelters

President Trump issued a proclamation aimed at reversing a Biden-era environmental rule that enforced stricter air emission standards on copper smelters.

Donor Gives $130 Million to Cover Shortfall in Troop Pay During Shutdown

Trump announced on Oct. 23 that an anonymous donor sent $130M to cover military pay during the ongoing government shutdown.
spot_img

Related Articles

Popular Categories

MAGA Business Central