ESG, an increased risk for rating agencies

The news of the acquisition by Cerved Rating Agency, a European rating agency managed by the Cerved Group, of 100% of the company Intégré, an innovative startup specializing in ESG (Environmental, Social, Governance) rating, is only the latest proof in chronological order of a phenomenon that has been in front of everyone’s eyes for several months and that characterizes the world of sustainable and responsible investments: the risk of ESG rating agencies.

A dynamic that is taking shape not only in the form of mergers and acquisitions between companies specialized in assigning sustainability balance sheets and ratings but also in acquisitions by financial companies that aim to directly acquire know-how in sustainability assessments.

Find out more about the takeover of Integre, an innovative startup specializing in ESG, by Cerved Rating Agency, and find the most important business news with our companion app, Born2Invest.

The Italian market is involved in the risk of rating agencies

With Cerved’s approach, the involvement of the Italian market in the risk of ESG rating agencies is confirmed. Just one year ago, the ESG index and research activities of Ecpi Group, a historic Italian company launched in 1997 by a group of partners led by Professor Michele Calcaterra, were acquired by the English company StatPro Group, listed on AIM in London and specialized in portfolio analysis developed in the cloud.

According to Eticanews.it, the acquisition of Ecpi had already marked a turning point in ESG information also in Italy: the consolidation of the sector had already accelerated in the first half of 2019, with the acquisition of Beyond by the LSE, and the conquest of Vigeo by Moody’s. “Basically, there is a market with obvious potential in the figures, both in the explosion of ESG index production and in the acceleration of investments in ESG indices and ratings.”

ESG services are in high demand

As explained in a press release, Cerved Rating Agency’s choice to takeover Integre, an innovative startup that has developed an ESG methodology in line with international best practices and has a rich database of information on sustainable development, allows the company to complete its ratings on the creditworthiness of companies, including assessments of the degree of sustainability of economic operators (companies, financial institutions, insurance companies) and their financial instruments.

ESG services are products that are increasingly in demand by the financial and banking market, not only because of the increased attention of consumers and investors to the concept of sustainability, but also because of the regulatory changes expected in the coming months. Cerved Rating Agency thus aims to be able to offer a full range of ESG scores and ratings which, according to the agency itself, will also include a useful platform for banks and large companies to calculate a sustainability score on their customers and suppliers.

The objectives of the operation

“Thanks to the specific know-how developed by Integre, already our business partner – explained Andrea Mignanelli, CEO of Cerved – we will consolidate the presence of our rating agency in the sustainable development sector, combining in a synergistic and complementary way Cerved’s informational and analytical assets with Integre’s skills. Sustainable growth and protection against risks – also of an environmental nature – are issues that are particularly close to the heart of our entire group.”

On the other hand, among the main objectives declared by Cerved is “to support the sustainable growth of the national system, helping companies to become increasingly green, fair and well-managed, is in fact one of the main objectives of Cerved, which also has MBS in its portfolio. a company specialized in sustainable development consulting. These are issues at the center of the European agenda and of great economic weight: in fact, 148,000 Italian companies will have to invest, for example, in the energy transition, according to the taxonomy defined by the EU, and many of them are small and financially fragile.”

The operation was presented by contextualizing it in the fact that the European Union has launched a plan to mobilize $1.19 trillion (€1 trillion) of investment over the next ten years with the aim of making the Old Continent the first one with zero emission by 2050. To access this money, companies must demonstrate that they have adopted or are approaching sustainable models.

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(Featured image by PIRO4D via Pixabay)

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