With sustainability becoming a mainstream concern for many investors, TMI talks to Alex Griffiths, Head of Corporate Ratings, EMEA, Fitch Ratings, about climate-related assessments and ratings, and the delivery of a more appropriate model.
The role of financial products in building a sustainable future is clear, yet the means of assessing and rating products to help investors understand what they’re putting their money into is still shrouded in mystery and uncertainty.
The current lack of clarity is perhaps tolerable, given that the whole concept of the industrial-scale support of green financial services is still in its infancy. But as sustainable-focused investors become more sophisticated in their expectations of outcome – especially the real-world impact of their decisions – so the supporting players, notably the rating agencies, need to provide better information to help investors make the most appropriate decisions.
Ratings and analysis from the main agencies are, for serious investors such as corporate treasuries, a vital source of information. Indeed, the professional judgments of agencies such as Fitch are being used to help them correctly implement strategy and policy, and of course to manage risk.
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