ESG research for sovereign bonds

ESG Research for sovereign bonds

Evaluating the financial materiality of ESG factors for sovereign debts

ESG (Environment, Social, Governance) factors are increasingly gaining momentum in the financial analysis. These factors bring additional insights on the exposure of asset classes to a number of risks that can have tremendous impacts on their performance. Yet many challenges remain to include systematically these factors, such as lack of homogeneity, weighting policy of different factors, assessment of the financial materiality of these factors, and relative importance among potentially hundreds of factors.

In this context, Beyond Ratings has developed an exclusive methodology to assess the ESG factors for sovereign bonds. Relying on a quantitative approach, we evaluate the most significant ESG factors for 5 segments of countries, depending on the level of GDP per capital. We recalculate a sustainable GDP and adjusted financial ratings to factor the impact of these ESG factors.

We provide a systemic assessment of ESG criteria for more than 160 countries:

  • E, S, G sub-score and synthetic an ESG score by country
  • recalculated GDP factoring ESG criteria that do impact the economic performance
  • adjusted financial ratingsfor sovereign bonds
  • data sets and advanced statistical analysis of ESG factors

Related Research Service

ESG Sovereign Factor-IN

Subscription research service to assess the impact of ESG factors on Sovereign Risk.