Best-in-Service
Our ESG Best-in-Service product differs from the traditional ESG ratings available on the market, which focus on first-party disclosures. In addition to the traditional method for ESG metrics, our methodology also considers the product impact of companies across their lifecycle and includes an evaluation of controversial products and business practices.
Sectoral benchmarks are deciphered for each of the Inrate-defined service sectors. Companies, upon assessment, are assessed as per these service benchmarks, for companies falling both within the same traditional sector (e.g., shipping company vs. shipping company) and across sectors (e.g., shipping company vs. rail company).
The ESG Best-in-Service approach permits cross-industry comparison within a given service sector. For instance, in the service sector energy, companies producing energy from fossil fuels, such as oil and gas, can be compared with companies producing energy from renewable sources, such as wind, solar, hydro, or tidal power.
The overall rating ranges from A+ to D-. Grades from A+ to B- signify a high positive to positive impact, i.e., a contribution to decreasing market failures. Grades from C+ to D- stand for a net negative to high negative impact and that market failures are cemented or increased.
