ESG ratings: Bank of Russia’s recommendations
The Bank of Russia has devised its recommendations aimed at increasing the quality of the ESG ratings methodology and the practice of assigning ESG ratings. This soft regulation will form the basis for enhancing the independence, transparency and comparability of ESG ratings.
The recommendations are targeted at both ESG ratings providers and users — companies and issuers who will be able to take into account the assessment criteria for improving their performance.
In these guidelines, the Bank of Russia defines the term ‘ESG ratings’, establishes a minimum set of elements taken into account for the assessment, and introduces a single rating scale.
The consistency, integrity and timeliness of ESG ratings are crucial for future sustainable growth of Russia’s economy. They help evaluate how significantly organisations may impact the environment and society and be exposed to external risks. Besides, such ratings ensure access to foreign markets and increase the competitiveness of Russian market players.