ESG rating providerstypically uselonger time horizonsthan credit rating agencies because ESG factors (e.g., climate change, governance risks)unfold over extended periods.
Credit rating agencies focus onshort-term default risk, whereas ESG ratings assesslong-term sustainability risksthat may impactvaluation and performance over decades.
[References:, MSCI & Sustainalytics ESG Ratings Methodology, CFA Institute ESG Risk Time Horizons Report, Principles for Responsible Investment (PRI) Guide to ESG Credit Risk, ========, , ]
Submit