Unrated Universe of Project Finance: The Credit Story Told From a Social, Environmental and Governance Perspective

Project Finance plays a key role in funding various types of infrastructure and industrial projects across the globe. It’s becoming increasingly important to factor physical risks, regulatory risks, cyber and governance related risks, social and political risks and others as part of the credit process. Across regions, increased funding is needed to drive a strong pipeline. However in the current environment, balancing various environmental, social and governance (ESG) related risks and understanding their link to credit risk is essential.

As the market has evolved, so have our Scorecards. S&P Global Market Intelligence’s ESG enhanced version of the Project Finance Credit Assessment Scorecard is a simplified way to incorporate various ESG risks linked to credit risk factors in the unrated universe that focus on the key areas of risk for the project finance entity. The Project Finance Scorecard with ESG functionality allows credit risk analysis in a streamlined manner and helps assess 100+ different project types from the initial preliminary investment stage through the whole life cycle of the project.