Sustainable Finance Ratings as the Latest Symptom of “Rating Addiction”

Using the widely accepted but rarely articulated concept of ‘rating addiction’, this piece aims to examine the recent entrance of the credit rating agencies into the sustainable finance field against the backdrop of ‘rating addiction’. Once the concept of ‘rating addiction’ is positioned, the effects of the addiction can be witnessed by even just a cursory glance at the history of the credit rating agencies, particularly their recent history. On that basis, this article provides a warning for regulators and the field with regards to the potentially negative effect that credit rating agencies can have upon the ever-growing and socially-important sustainable finance sector. Additionally, assessing the aptitude of the agencies in this sector, in comparison to the sector’s utilisation of their products, may provide further evidence of a system addicted to ratings

After the credit crunch: the future of sustainable investing

As the fallout from the crisis in financial markets spreads throughout the wider economy, Nick Robins and Cary Krosinsky argue that preventing future market meltdowns and avoiding catastrophic climate change requires a new era of long-termism in investment Copyright (c) 2009 The Authors. Journal compilation (c) 2009 ippr.