RAM part of landmark ESG effort on global fixed-income market
RAM Ratings took part in another global initiative to drive forward sustainable finance, through its active contribution to the United Nations-supported Principles for Responsible Investment’s (PRI) publication, Shifting Perceptions: ESG, credit risk and ratings – Part 1: The state of play.
“We are glad to be able to participate in the thought leadership for this landmark PRI publication, which deepens the understanding of ESG analysis in credit assessment for both investors and credit rating agencies (CRAs),” highlights Foo Su Yin, CEO of RAM Ratings.
This research under the stewardship of the PRI Advisory Committee on Credit Ratings (ACCR) consolidates the findings of the survey that the PRI conducted in 2015, along with recent input from global fixed-income investors and CRAs.
This marks another important milestone in the journey following the PRI’s Statement on Environment, Social and Governance ( ESG) in Credit Ratings on 26 May 2016, of which RAM Ratings is also a signatory.
The statement on ESG in Credit Ratings is a way for RAM Ratings, together with Moody’s Investors Service, S& P Global Ratings, Dagong Global and 5 other CRAs as well as global investors, to communicate our commitment to a more systematic and transparent incorporation of ESG into credit ratings and analysis.
According to the PRI, global investor demand for ESG consideration in financial assets is increasing and, with it, the need for better understanding of ESGrelated factors and investment strategies.
The number of PRI signatories has already exceeded 1,700 this year, with over USD70 trillion of assets under management. “RAM Ratings is a strong ESG advocate.
The PRI values its contribution to this publication and within the ACCR,” remarks Fiona Reynolds, managing director of the PRI.
According to this publication, investors and CRAs are making progress in considering ESG factors in credit analysis, with growth in both resources and human capital being dedicated to build up this area.
“This PRI report is a step forward in highlighting why systematic and transparent ESG analysis in credit asssessment is vital to the fixed-income industry,” notes Promod Dass, deputy CEO of RAM Ratings, which is also a member of the PRI’s ACCR.
“The widespread support across PRI signatories and CRAs for the PRI statement on ESG in credit ratings underlines the financial community’s increasing emphasis on ESG considerations.
RAM Ratings is an active proponent of and a thought leader in sustainability.
It was also among the international stakeholders involved in the formulation of the Bellagio Call to Action on 17 June 2016 – an initiative to encourage sustainable and resilient infrastructure, mooted by Switzerland- based Global Infrastructure Basel Foundation.
In February 2017, RAM Ratings’ sister company, RAM Consultancy, introduced Sustainability Ratings to drive and encourage corporate sustainability.
On 18 May 2017, RAM Ratings contributed to the formulation of the Hanoi Principles for Sustainable Infrastructure led by the Asian Development Bank and the World Wildlife Fund.