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
In The News
Research reveals surprising link between socio-economic indicators and sustain...

A new study by EIT Climate-KIC partner academic institutions...

Research reveals surprising link between socio-economic indicators and sustainability transition
Opinion
Transformation capital: A new investment logic for catalysing systems change
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Transformation capital: A new investment logic for catalysing systems change
Opinion
Innovating in complexity: From single-point solutions to directional systems innovation
Dominic Hofstetter TRANSFORMATION CAPITAL, EIT CLIMATE-KIC
Innovating in complexity: From single-point solutions to directional systems innovation
In The News
Four EIT Climate-KIC innovators nominated for annual EIT Awards

The European Institute of Innovation and Technology (EIT) has released...

Four EIT Climate-KIC innovators nominated for annual EIT Awards
In Detail
Report offers recommendations for development of agricultural impact tool

A new report supported by EIT Climate-KIC’s CSA Booster programme proposes technical, governance and business arrangements for the development of a new tool for...

Report offers recommendations for development of agricultural impact tool
In Detail
Food value chains strategy report offers recommendations based on systemic i...

A new report details the work of EIT Climate-KIC and its partner Metabolic, a consulting company using systems thinking to tackle major sustainability challenges,...

Food value chains strategy report offers recommendations based on systemic impact
In The News
EIT Climate-KIC supports digital roadmap for a circular economy

EIT Climate-KIC, along with several European stakeholders, is advocating...

EIT Climate-KIC supports digital roadmap for a circular economy
In The News
EIT Climate-KIC urges London to lead in turning climate emergency into action

Climate innovation agency EIT Climate-KIC welcomed today the first...

EIT Climate-KIC urges London to lead in turning climate emergency into action
Opinion
London Climate Action Week: Climate Innovation Insights
London Climate Action Week: Climate Innovation Insights
Opinion
How can we deliver a net-zero emissions UK?
Andy Kerr Director, UK & Ireland, EIT Climate-KIC
How can we deliver a net-zero emissions UK?
Opinion
Can we identify the tipping points for transformative climate action?
Susannah Fisher Strategic Research Lead, EIT Climate-KIC
Can we identify the tipping points for transformative climate action?
In The News
Study launched on decarbonising Europe’s heavy industries by 2050

Industry representatives, regional experts, academics and EU officials held...

Study launched on decarbonising Europe’s heavy industries by 2050
In our community
Interview with Yvon Slingenberg of DG Climate Action, European Commission
Interview with Yvon Slingenberg of DG Climate Action, European Commission
In Detail
Evaluating the benefits of improved cooking solutions: impact data in high r...

Gold Standard today released a research study by Vivid Economics that estimates the economic value of Gold Standard-certified project benefits related to climate, health,...

Evaluating the benefits of improved cooking solutions: impact data in high resolution
In The News
New EIT Climate-KIC supported report proposes basis for a future EU taxonomy i...

The European Commission has welcomed the publication of the...

New EIT Climate-KIC supported report proposes basis for a future EU taxonomy in legislation
In The News
WCEF 2019: The challenges and potentials of circular procurement in cities

Increasing population growth and urbanisation intensifies the pressure on...

WCEF 2019: The challenges and potentials of circular procurement in cities
In The News
First round of 15 winners of Reinventing Cities competition announced

C40 Cities and EIT Climate-KIC have announced 15 winners...

First round of 15 winners of Reinventing Cities competition announced
In The News
Lisbon’s City Finance Lab-backed green participatory budget awarded €5 mil...

Lisbon City Council’s first-ever ‘green’ participatory budget, an initiative...

Lisbon’s City Finance Lab-backed green participatory budget awarded €5 million for next cycle
In The News
WCEF 2019: ‘The circular economy in cities’

EIT Climate-KIC CEO Kirsten Dunlop emphasised the importance of...

WCEF 2019: ‘The circular economy in cities’
In Detail
New Report on Circular Procurement in public construction projects shows how...

Public procurement affects a substantial share of world trade, amounting to more than €1.3 trillion per year. In the EU, the public purchase of...

New Report on Circular Procurement in public construction projects shows how targeted action can drive system-level impact
In The News
EIT Climate-KIC at World Circular Economy Forum 2019

EIT Climate-KIC is playing a prominent role at the...

EIT Climate-KIC at World Circular Economy Forum 2019
In The News
17 EIT Climate-KIC solutions included in MI 100 Global High Impact listing

13 EIT Climate-KIC Accelerator start-ups and four EIT Climate-KIC...

17 EIT Climate-KIC solutions included in MI 100 Global High Impact listing
In The News
EIT Climate-KIC’s global cleantech competition ClimateLaunchpad is open ...

EIT Climate-KIC’s ClimateLaunchpad, the world’s largest green business ideas...

EIT Climate-KIC’s global cleantech competition ClimateLaunchpad is open for registration
Opinion
Transformation Capital: A new investment logic for catalysing systems change
Dominic Hofstetter Transformation Capital, EIT Climate-KIC
Transformation Capital: A new investment logic for catalysing systems change
In The News
EIT Climate-KIC supported SkyNRG develops Europe’s first sustainable jet...

SkyNRG announced plans to develop Europe's first sustainable aviation...

EIT Climate-KIC supported SkyNRG develops Europe’s first sustainable jet fuel production plant
Opinion
Collaboration is hard!
Ulrike Linnig Innovation Lead, DACH, EIT Climate-KIC
Collaboration is hard!
In The News
EIT Climate-KIC supported report shows how to reduce industrial CO2 emissions

A new joint report, published by RWTH Aachen University...

EIT Climate-KIC supported report shows how to reduce industrial CO2 emissions
In The News
London event showcases innovation behind new investor climate tool

Yesterday’s event, titled “Applying Climate Risk Data to Investment...

London event showcases innovation behind new investor climate tool
In our community
Interview with Francisco de la Torre, Mayor of Malaga, Spain
Interview with Francisco de la Torre, Mayor of Malaga, Spain
Opinion
Adapting to climate change in Europe: Building a systemic and urgent vision
Susannah Fisher, EIT Climate-KIC and Andrew Norton, IIED
Adapting to climate change in Europe: Building a systemic and urgent vision