Executive Brief - Governing Risks, Innovating for Impact: Key Developments from Rating ESG and Valuing Impacts

Around the world, ESG ratings are integrated into financial rating regulations, and standards are developed for impact valuation. Based on the TVP’s analysis of market practices and regulation in impact valuation and ESG ratings, we propose key clarifications that, if not addressed, will lead to unintended consequences for transition strategies and financial stability. Financial market regulators do not clearly distinguish them, with potential unintended consequences in the future.

For executives and board members, it is important to know the difference and the implications for their corporate transitions in terms of strategy, capital allocation and governance. With more stringent reporting standards and stronger investor expectations on the horizon, this brief equips you with the insights for high-level discussions and engagements.

Read more in our executive brief here.