[ongoing] REll, Jens (2024). incorporating Environmental, Social and Governance factors within credit ratings of Companies
Abstract
This thesis investigates the rating methodologies of External Credit Assessment Institutions (ECAIs), focusing specifically on the incorporation of Environmental, Social, and Governance (ESG) factors within credit ratings. By analyzing all registered or certified ECAIs as published by the European Securities and Markets Authority (ESMA), the research seeks to uncover how these ESG factors are integrated into credit assessments and their subsequent impact on financial risk management. The findings provide a comprehensive overview of the approaches used by ECAIs in ESG integration, revealing implications for regulatory compliance and financial stability.
Based on the insights gained from this analysis, the thesis offers targeted recommendations for ING. These recommendations aim to guide ING in understanding and leveraging ESG-integrated ratings to enhance its credit risk modeling and management practices, thereby supporting its strategic goals in sustainable finance.
Supervisors
UT Supervisors
- Marcos Machado
- Jörg Osterrieder
ING Supervisors
- Evgenii Pavlovskii