Scandinavia dominates the 2022 Sustainable Competitiveness Index
Published 12-20-22
Submitted by SolAbility
December 20, 2022 /CSRwire/ - ESG country rating: the Global Sustainable Competitiveness Index (GSCI) measures sustainable development and green growth since 2012.
The GSCI is based on 189 quantitative indicators, derived from renowned international organisations. The raw data is scored both in absolute terms and in the trends over the recent past to present a comprehensive view of a nation’s status, performance, and future potential. The Indicators are grouped into the six pillars:
Key Take-Aways From the 2022 Sustainable Competitiveness Index:
Read more, or download the Global Sustainable Competitiveness Report 2022
ESG Country Ratings vs. Sovereign Bond Ratings:
Sovereign bond ratings are heavily influenced by the large rating providers – Moody’s, S&P, and Fitch. The comparison of the conventionally applied sovereign bond ratings and ESG country credit ratings based on the Global Sustainable Competitiveness Index (GSCI) shows:
The comparison of ESG and non-ESG ratings shows distinctive trend: countries whose current wealth is based to a significant part on the exploration of non-renewable resources have a lower rating, (i.e., would have to pay higher interest rates on their debts), in particular the oil-rich nations in the Middle East. Eastern Europe as well as South America (except Chile) would do better under sustainability-adjusted credit ratings and occur lower interest rates. A number of African countries, mainly in sub-Saharan tropical Africa, would also see their credit rating increase.
While there has been significant movement in terms of integrating ESG considerations in the financial World (including the rating agencies), ESG country credit ratings show that there is still a significant gap in integrating ESG risk and opportunities in sovereign bond ratings.
For more detailed information, download the full report here
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