Environmental, social, and governance (ESG)-related rating actions have generally mirrored overall rating activity trends, with the exception of one-notch downgrades. From April 2020-December 2023, 13% of all corporate and infrastructure rating actions cited ESG factors as a rating driver. One-notch downgrades accounted for nearly 32% of this ESG-related activity, compared with only 21% for the wider corporate and infrastructure universe. Of the overall ESG-related corporate and infrastructure rating activity, more than three-quarters of the total rating actions were negative, prominently driven by health and safety (as a result of COVID-19) and governance factors. Climate and transition risks have thus far driven a low, but growing, number of credit rating actions—which may increase moving forward due to the potential for more disruptive regulation, as issuers experience the generally costly low-carbon transition, and reflecting more frequent and severe physical climate risks.