Fitch Ratings released a tool showing the relevance of environment, social and governance factors to credit ratings in different industries, as investor demand grows for ways to measure ESG criteria from wastewater management to employee well-being.

  • The ESG Heat Map assigns each of its ESG factors a green, yellow or red score and a number based upon how relevant it is to a given industry. 
  • The map covers 51 industry sectors within broad sectors like food, beverage & tobacco, utilities, power & gas, service & communications.
  • “The heat map is the latest initiative in Fitch’s ongoing efforts to meet investor requests for increased transparency surrounding the impact of ESG factors on credit ratings,” Fitch said in its statement. 
  • The product follows Fitch’s January release of ESG Relevance Scores
  • Karma Takeaway: Fitch’s map follows similar releases from rival credit ratings agencies Moody’s and Standard & Poor’s, indicating the growing demand from bond investors for insight into how ESG factors affect issuers.