Credit Rating Agencies and Environmental, Social and Governance Considerations: A Long Road Ahead

2017 International Business Law Journal 3

6 Pages Posted: 24 May 2017  

Daniel Cash

Aston University

Date Written: May 22, 2017

Abstract

Recently, the leading Credit Rating Agencies vowed to embrace the initiative developed by the ‘Principles for Responsible Investment’ organisation to incorporate environmental, social, and governance factors into their ratings in a ‘more systemic way’. In this short note, the focus will be on the reasons for why this initiative is being developed, and some of the potential outcomes. Ultimately, it is suggested that the Big Two rating agencies are incorporating such initiatives in name only, and in actual fact the rest of the industry has been actively developing these principles but have been met with stiff resistance from regulators and the leaders of the oligopoly.

Suggested Citation

Cash, Daniel, Credit Rating Agencies and Environmental, Social and Governance Considerations: A Long Road Ahead (May 22, 2017). 2017 International Business Law Journal 3. Available at SSRN: https://ssrn.com/abstract=2972334

Daniel Cash (Contact Author)

Aston University ( email )

Aston Triangle
Birmingham, B4 7ET
United Kingdom

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