Fimilac launches CSR ratings agencyNovember 2002
A company that owns one of the world’s largest ratings agencies has set up a service focusing on corporate social responsibility.
Fimilac, which owns the Fitch ratings agency, has created CoreRatings, a firm of 30 investment analysts that will assess the quality of companies’ corporate governance procedures and their social and environmental performance.
CoreRatings will use analysts from the socially responsible research firm Global Risk Management Services, which Fimilac recently bought, and will be based in offices in London, Madrid and Paris. Companies will be given one of ten ratings between A+ and D. The pharmaceuticals sector will be the first rated.
Among factors CoreRatings will assess are ‘management culture’, ‘long-term access to people skills’, reputational risk, and future liability to class actions. CoreRatings says the market for its services will be equity and debt investors, lending banks, new issue underwriters, and insurers needing help to assess investment risk.
Tauni Brooker, programme manager at the World Business Council for Sustainable Development and former managing director of the Dow Jones Sustainability Group indices, has joined CoreRatings as managing director.
The launch follows the recent creation of another ratings firm, Vigeo, in the same field. France-based Vigeo, owned by a number of firms, including Axa, BNP Paribas, Carrefour, Credit Lyonnais and Danone, will also rate companies on their social and environmental performance (EP4, issue 4).
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