The ESG rating is based on FTSE Russell's methodology used to assess an organization’s business practices and performance on sustainability efforts. This involves evaluating various Environmental, Social, and Governance (ESG) factors through a comprehensive framework that includes multiple dimensions and indicators.
In the capital markets, investors use ESG ratings to evaluate an organization’s business risks and their sustainability efforts to mitigate these risks. This helps investors make informed decisions by understanding how well a company manages its ESG-related risks and opportunities.
| Rating | Definition |
|---|
★ ★ ★ ★ | Companies with a FTSE4Good ESG Rating of 3.7 or higher |
★ ★ ★ ★ | Companies with a FTSE4Good ESG Rating of 2.5 - 3.6 |
★ ★ ★ ★ | Companies with a FTSE4Good ESG Rating of 1.3 - 2.4 |
★ ★ ★ ★ | Companies with a FTSE4Good ESG Rating of 1.2 or lower |
| N/A | Currently not being assessed by FTSE Russell |
