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Notices
UE
Ulf Erlandsson (not verified)
12th August 2021 | 8:51am

The MSCI rating is not uniformly distributed in contrast to the S&P and Sustainalytics percentile scores. So I would opine that the linearization you do on the MSCI score forces down correlation/is incorrect. 65% correlation on S&P and Sustainalytics (the only comparables in the sample) is pretty good, considering that ESG is much more heterogenous than credit risk and that non-financial data is poorer quality.