Our Methodology
With our sustainability ratings, we assess the impact that companies have on society and the environment with their behavior and products and services. Our assessments also provide information on the willingness and ability of a company to effectively address the challenges it faces.Inrate’s methodology is a significant differentiator that adds value to global asset managers for ESG Impact ratings. Here’s why it’s a game-changer:
CURRENT SITUATION
Companies have an impact on the environment and society. Price distortions due to market failures (costs and benefits not borne by companies) triggered by externalities disguise the value of the company and prevent sustainable development.
OUR APPROACH
ESG Impact Ratings are based on semi-quantitative assessments of the companies’ impacts on the environment and society through their business activities (products and services, P&S), management & operations (CSR), and critical business practices (Controversies).
OUR METHOD
Assessments are done using a set of science-based criteria, weighted by relevance and insights by our researchers and/or external data and studies.
ESG Impact Ratings apply to all major asset classes, including sovereigns, private equity, and real estate. It complies with the concept of double materiality and is less susceptible to greenwashing.
IMPLICATIONS
Negative externalities (e.g., CO2 emissions or tobacco) lead to lower ratings, while positive externalities (e.g., innovation, education) or substituting activities (e.g., solar vs. coal energy) lead to higher ratings.
New regulatory frameworks (e.g., CSRD, EU Taxonomy) consider financial and impact materiality (Double Materiality)*. Companies’ environmental and societal impact can also be financially material (risks & opportunities).
RATING COVERAGE
Our ESG Impact Ratings and ESG data sets cover global equity and bond markets, from large to small caps, and from corporate issuers to sovereigns and supranationals. More than 10’000 issuers will be covered in 2023 and we are continuously expanding. The coverage includes all major issuers of the most used global benchmarks regarding listed equities and bonds, private companies, and real estate Emerging Markets worldwide.
QUALITY & UPDATES
Inrate recognizes the importance of quality via ensuring accuracy of data research. The quality of the generated ratings and data is paramount to our proprietary rating methodology. Our robust quality management framework anchors the integrity of our ratings via a comprehensive approach to ensure relevance and authenticity of the outcome.
The company profiles are continuously updated, whereby ratings are updated yearly. Critical Business Practices (Controversies) are gathered twice a week. Our methodology has been continuously developed and regularly adjusted over the past 30 years.
LATEST NEWS
Inrate client testiominals – BPIfrance
Raphael Cottin, Economiste at BPIFrance How did you hear about Inrate and what convinced you to...
New Engagement Report
In this year's annual meeting of the Responsible Shareholder Group (RSG; Inrate's national...
ESG & Stewardship-ASIP Reporting
ESG reporting by pension funds has become an important part of responsible investing, reflecting...