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Fortune
Fortune
Christiaan Hetzner

Ratings agency S&P stops grading ESG credit risks

S&P Global Ratings has dropped grading borrowers on ESG-related credit risks (Credit: Ulrich Baumgarten—Getty Images)

Credit ratings agency Standard & Poor’s has ditched numerically ranking corporate borrowers on their ESG risks amid a broader debate over ethical investing. 

Environmental, social and governance scores gained popularity in recent years by capturing risk factors such as costly CO2 emission legislation and pending class action lawsuits, which had previously mystified even professional money managers. 

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