deen

ESG Score

Transparent assessment of sustainability risks.

Ready to tackle the new challenges

The trend is clear and irreversible:
Ecological and economic necessities are increasingly overlapping, raising new challenges especially for the finance industry.
The EU intends to promote sustainable business practices by steering capital flows in the right direction. That’s what the EU Taxonomy is for, which financial institutions are expected to implement.
In addition to typical credit risk factors, state-of-the-art risk management now also needs to cover non-financial risk.

ESG plays a key role in this context…
…and has already found its way into recent regulation: MaRisk 7.0, NFRD (future CSRD).
When assessing ESG risks, traditional risk management faces new, specific challenges: the complexity of climate risks, longer time horizons than for credit risk, increasing but as yet largely unfinished regulation, numerous service providers using different approaches.
It is therefore crucial for financial institutions to manage these risks comprehensively and efficiently. This is where RSU can help with professional solutions like the ESG Score.

RSU’s ESG Score is a risk score that focuses on financial risk.
The ESG Score is calibrated on a scale from 0 to 100.
The points awarded are converted to a grade from A to E, where A = very low sustainability risks, …, E = high sustainability risks.
The result can be shown at different levels (E-Score, S-Score, G-Score, etc.). The E-Score can additionally be broken down between physical and transitory risks.
The score provides a ranking of the companies in question – both at industry level and across industries.

By relying on a scoring system set up by a central service provider, institutions minimise their development and maintenance costs.

ESG Score for measuring ESG risks

Comprehensive and transparent: The ESG Score helps efficiently meet the increasing regulatory requirements for measuring ESG risks.

IN A NUTSHELL:

Transparent

Transparent methodology developed by RSU together with clients.

Efficient

Efficient workflow: initial assessment requires little input; average values used by default.

Flexible

Complete coverage of relevant portfolio intended. Currently available: Corporates. Next stages: Real Estate, Projects/Assets and Financials.
The model is tailored to the portfolios of RSU’s client institutions; ESG aspects can be individually selected and examined.

Facts

The ESG Score is based on a quantitative computation core.

The quantitative result can be augmented by qualitative elements.

Other than the overall score, the system produces partial scores for the three subcategories E | S | G.

More helpful tools for you:

Risk Guard

Get daily updated warning signals for companies, industries, and countries. The system issues alerts whenever the algorithms detect any default risks – up to twelve months in advance.

LB-Rating

Our rating systems support your integrated risk analysis, taking into account quantitative and qualitative data, potential warning signals, and external influences.

Questions? We’ll be happy to answer them.
Write to info@rsu.one or call +49.(0)89.442340-0