We historically assessed companies’ environmental, social and governance (ESG) risk alongside core operating and financial risks. Now we are furthering this analysis by using a proprietary pricing model to capture the influence of ESG factors on credit spreads. It shows the correlations between an issuer’s QESG Score – developed using best-of breed external research and insights from the engagement specialists in EOS – and their credit-default-swap spread. This enables us to calculate the marginal price of the ESG risk for each issuer, and anticipate changes in valuation. It is an informative analytical tool, enabling us to avoid issuers with tight spreads and low QESG Scores and favour those with wide spreads and high QESG Scores.