Fitch launches interactive ESG dashboard for global financial institutions

Fitch Ratings has rolled out a dashboard that will allow users to see the environmental, social and governance (ESG) scores it has assigned to more than 1,000 global financial institutions.

The dashboard covers banks, insurers and non-bank financial institutions (NBFI).

Since the scores were launched in February, Fitch said ESG risks influenced its rating decisions for 20% of banks, 3% of insurers and 28% of NBFIs. Governance risks were most relevant for rating decisions, Fitch said.

The dashboard can be set by region and sector. It also shows the changes in ESG relevance scores each quarter. Q2 2020 data is already available.

Fitch made 35 decreases in ESG scores for ESG individual elements in Q2 2020, with eight increases for more than 760 issuers. ESG relevance scores decreased for 2% of banks and increased for 2%. NBFIs saw increases for 5% of businesses and no decreases. ESG relevance scores for insurers were unchanged in Q2 2020.

Fitch said ESG risks are more relevant for emerging market rating decisions, with 28% of issuers scoring four or more for at least one ESG element, compared to 9% of issuers in developed markets.

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