ESG Ratings Consultant

Why Do ESG Ratings matter?

In today’s corporate environment, Environmental, Social, and Governance (ESG) ratings are not just about compliance or ethical considerations—they have a direct impact on a company’s financial health and access to capital.

A study by Fruuit Consulting found that the world’s top 20 largest ESG funds by Assets Under Management (AUM), which account for $180 billion USD, have an MSCI ESG rating cutoff that averages at ‘A’ or ‘BBB’. This means companies that do not meet these ratings are excluded from significant investment opportunities. Even more telling, over 50% of these funds’ capital is allocated to companies rated AAA or AA.

Unlocking Trillions in Capital

Companies with ESG ratings below BBB cutoffs lose access to $3.4 trillion in ESG-focused capital, while top performers have access to an exclusive $1.6 trillion funding pool. As North America and global markets shift toward sustainable investing, low ESG ratings can shut companies out of critical financing opportunities.

Why Improving ESG Ratings is Critical

Improving ESG ratings can unlock vast opportunities for your business, including:

Access to trillions of dollars in ESG-focused investments.
Lower costs of debt and enhanced credit ratings.
Enhanced reputation with corporate clients seeking sustainable partnerships.

Learn more about how we can help improve your ESG ratings and ensure your business is positioned to thrive in a future where sustainability is key.

Corporate Customers and Debt Financing

Corporate customers are increasingly prioritizing ESG ratings in their business relationships. Low-rated companies are often sidelined as firms seek to improve their own ESG standings. Debt financing also becomes more expensive for companies with lower ESG scores. Companies that move from average or lagging ESG ratings to leadership positions can see their cost of debt decrease by up to 5%. Additionally, a single ESG grade difference is correlated with bond yield fluctuations, further impacting a company’s financial leverage.

Our process to improve ESG ratings

Recommendations on ESG Disclosures:
- Provide detailed suggestions for disclosures that align with data provider expectations.
- Ensure your ESG data is presented in a way that meets top standards for rating agencies.
Policy Adoption & Industry Best Practices:
- Offer expert guidance on adopting policies that reflect industry-leading ESG practices.
- Recommend the necessary disclosures to align with best practices, improving transparency.
Optimized Communication with Rating Agencies:
- Provide step-by-step guidance on how to communicate with ESG rating agencies effectively.
- Help you achieve maximum credit for all your ESG-related disclosures through clear and strategic messaging.

But why Fruuit?

We actually built ESG ratings at MSCI and Sustainalytics
Thorough ESG expertise with a Globally Renowned Team
We have demonstrated experience increasing ESG ratings for hundreds of companies.
We know that improving ESG ratings is more of an art than a science.
We have used ESG ratings and know how investors use them.

Timeline and Pricing

Initial Consulting Commitment:
- Our comprehensive ESG ratings consulting requires 60-70 hours of dedicated work initially to assess your current standing and provide detailed recommendations.
15-Month Access to Ongoing Support:
- You will receive 15 months of continuous access to our expert ratings consulting, ensuring long-term guidance and support as you implement improvements and engage with ESG rating agencies.
Cost-Effective Solutions:
- Fruuit Consulting is committed to offering cost-effective ESG solutions tailored to corporations of all sizes.
- Contact us for pricing to discuss how we can help you meet your specific ESG rating goals.