EIT Climate-KIC supported Beyond Ratings registered as credit rating agency by European Securities and Markets Authority

EIT Climate-KIC supported firm Beyond Ratings, a financial services company that specialises in environmental, social, and governance (ESG) analysis, has now been designated a credit rating agency by the European Securities and Markets Authority (ESMA).

ESMA is the single direct supervisor of credit rating agencies (CRAs) in Europe. Its mandate stems from the EU’s CRA regulation, which ensures a common framework and minimum quality standards for credit ratings issued in the European Union. ESMA’s decision allows Beyond Ratings to issue ratings for central, regional, and local governments as well as policy-driven financial institutions.

“We believe ESMA accreditation validates our central proposition that ESG analysis is essential to evaluate all manner of risks, including credit risks of sovereigns, sub sovereigns, and development banks”, said Rodolphe Bocquet, CEO and co-founder of Beyond Ratings. “ESMA registration has been an objective since the firm’s founding in 2014 and will enable us to expand our ESG platform for positive finance.”

Elie Hériard-Dubreuil, Managing Director who oversaw the ESMA application, comments: “We believe that our ratings will enable investors to consider a broader set of risk factors. We maintain that investors who ignore ESG do so at their peril”.

EIT Climate KIC has provided substantial assistance to Beyond Ratings. This took the form of financial support as well as building a network of experts. Bocquet provides further detail on this support: “EIT Climate-KIC first supported us in developing a key innovation of our credit rating methodology to integrate to what extent physical climate risk can impact sovereign bond issuers’ creditworthiness.”

“The work of Beyond Ratings in developing the sovereign credit rating methodology and the establishment of the credit rating agency bridges a critical gap – tying climate and physical risk to financial profiles of sovereigns. This is an important area of work towards the impact we want to see – to mainstream climate in financial markets, which is a priority at our  Mission Finance initiative at EIT Climate-KIC,” says Riyong Kim, Head of Programmes, Decision Metrics and Finance, EIT Climate-KIC.

Beyond Ratings is the commercial venture associated to an initial three-year academic research programme “RISKERGY”. This programme focused on developing innovative macro-economic and financial modelling to better account for energy as a production factor for national economies. Integrating climate change related risks, both physical and transition risks, was one of the company’s first targets.

As Bocquet says, “climate change risks in financial sovereign ratings will prove to be a powerful incentive to ensure that capital flows will be channelled towards low carbon development pathways.”

About Beyond Ratings

Based in Paris, France, and incorporated in 2014, Beyond Ratings provides innovative services to assist the financial sector in the transition towards sustainable trajectories. As a CRA, Beyond Ratings will be able to issue ratings to public issuers (sovereign, local and regional governments, and policy-driven financial institutions), based on methodologies which systematically integrate ESG factors into the analysis framework.

 
Location
France
Related Goal
Goal 10: Mainstream climate in financial markets
Articles you may be interested in
Opinion
Long democracies
Dark Matter
Long democracies
Opinion
Long financing in a volatile world
Dark Matter
Long financing in a volatile world
Opinion
Long welfare
Dark Matter
Long welfare
Opinion
Abstracted to entangled organisation
Dark Matter
Abstracted to entangled organisation
Opinion
Persistent things
Dark Matter
Persistent things
Opinion
Persistent selves
Dark Matter
Persistent selves
Opinion
Futures in long-termism
Dark Matter
Futures in long-termism
In our community
Strengthening community ties and supporting each other through the COVID-19 ...
Strengthening community ties and supporting each other through the COVID-19 crisis
Opinion
The Corona canvas: How to deal with the crisis as a founder
Marc Mogalle & Anje Kluth Business Buddies & EIT Climate-KIC
The Corona canvas: How to deal with the crisis as a founder
In The News
Lilium completes funding round worth over €224 million

EIT Climate-KIC supported Lilium, a Munich-based aviation company developing...

Lilium completes funding round worth over €224 million
In The News
TWAICE raises €11 million series A to power internationalisation efforts and...

EIT Climate-KIC supported TWAICE, a Munich-based battery specialist, has...

TWAICE raises €11 million series A to power internationalisation efforts and scaling
In our community
Madrid: A city turning eco-fictions into eco-futures through systems innovat...
Madrid: A city turning eco-fictions into eco-futures through systems innovation
In The News
EIT Community shines on Forbes 30 under 30 Europe list

Eight EIT Climate-KIC innovators are featured in the prestigious...

EIT Community shines on Forbes 30 under 30 Europe list
Opinion
Trees as infrastructure: Part two
Dark Matter
Trees as infrastructure: Part two
Opinion
Trees as infrastructure: Part one
Dark Matter
Trees as infrastructure: Part one
Opinion
Could COVID-19 usher in massive systemic change?
EIT Climate-KIC Italy
Could COVID-19 usher in massive systemic change?
Opinion
Working during corona lockdown: EIT Climate-KIC Italy sets an example
EIT Climate-KIC Italy
Working during corona lockdown: EIT Climate-KIC Italy sets an example
Innovation Spotlight
How to improve building energy performance without up-front capital

Air-conditioning equipment, office furniture, lighting systems and even floor coverings are being leased, so why can’t a...

How to improve building energy performance without up-front capital
In The News
EU Taxonomy shows the way to net zero by 2050

The Technical Expert Group (TEG) on Sustainable Finance has...

EU Taxonomy shows the way to net zero by 2050
In The News
Regine Kreitz new EIT Climate-KIC Director of Marketing and Communications

Regine Kreitz will join EIT Climate-KIC, the European Union’s...

Regine Kreitz new EIT Climate-KIC Director of Marketing and Communications
In The News
KICs tackling water scarcity in Southern Europe

How EIT and KICs are working to address one...

KICs tackling water scarcity in Southern Europe
In The News
EIT Climate-KIC and partners launch Massive Open Online Course on e-waste

EIT Climate-KIC, together with its partners the UN, the...

EIT Climate-KIC and partners launch Massive Open Online Course on e-waste
In The News
Five EIT Climate-KIC innovators featured in Global Cleantech 100

Five EIT Climate-KIC supported innovative ventures included in the...

Five EIT Climate-KIC innovators featured in Global Cleantech 100
In The News
The journey to zero-emissions transport – part three

The transport sector already accounts for a quarter of...

The journey to zero-emissions transport – part three
In The News
The journey to zero-emissions transport – part two

The transport sector already accounts for a quarter of...

The journey to zero-emissions transport – part two
In The News
The journey to zero-emissions transport – part one

The transport sector already accounts for a quarter of...

The journey to zero-emissions transport – part one
In The News
Malaysia and Estonia win Climathon Global Awards at ChangeNOW summit

The city of Penang, Malaysia, and a team of...

Malaysia and Estonia win Climathon Global Awards at ChangeNOW summit
Opinion
Redesigning venture capital (part III): A hypothesis
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Redesigning venture capital (part III): A hypothesis
Opinion
The Long Time
Beatrice Pembroke & Ella Saltmarshe Co-founders, The Long Time Project
The Long Time
In our community
Mariana Mazzucato on big-picture, high-ambition innovation missions
Mariana Mazzucato on big-picture, high-ambition innovation missions