Rating agency S&P Global has dropped its use of environmental, social, and governance (ESG) scores to assess corporate borrowers amid questions over the usefulness of such metrics and amid broader backlash to “woke” agendas being pushed in board rooms across the United States.
Since 2021, the credit rating agency has rated companies on a scale from 1 (best) to 5 (worst) in each of the three components of ESG. But now, S&P Global’s ESG scoring system is being dropped in the rating agency’s credit quality assessments of publicly rated firms.
