There are opinions that credit rating agencies should increase its transparency in how to incorporate ESG factors into its credit rating analysis, amid ESG investments increase. Reflecting such needs, United Nations Principles for Responsible Investment (UNPRI) shall established an initiative names ESG in Credit Ratings in 2016. This initiative aims to improve the transparency in how credit rating agencies systematically incorporate ESG factors into its credit analysis to share the opinions between investors and credit rating agencies.

JCR signed this initiative for the first time as a Japanese credit rating agency and is participating in global discussions regarding this issue.

For more details about this initiative, please click here.

JCR's Credit Ratings and ESG Factors

JCR believes that it is necessary to consider ESG factors when it assesses each items in its credit rating methodlogies. JCR includes the following impacts in its analysis concerning the possibility of ESG factor’s affecting any impacts on credit ratings.

- Impact by ESG factors on issuers’ sustainability
- Impact by ESG factors on cash flow generation capacity required for debt redemption
- Impact by initiatives for ESG on fundraising ability

For more details, please click here.