Utilizing Sustainalytics’ flagship ESG Risk Ratings, BVB’s goal is to make available top-line ESG research and ratings for the majority of companies listed on its Exchange, to promote responsible investing and highlight the importance of ESG standards among Romanian market participants.

Bucharest Stock Exchange (BVB) has launched the first ESG-focused initiative on the Romanian capital market, which aims to provide high-level ESG insights for BVB-listed companies.

Utilizing Sustainalytics’ flagship ESG Risk Ratings, BVB’s goal is to make available top-line ESG research and ratings for the majority of companies listed on its Exchange, to promote responsible investing and highlight the importance of ESG standards among Romanian market participants. The initiative also aims to encourage local companies to align their business strategies with ESG practices, which have witnessed a spectacular growth globally in recent years. Sustainalytics’ ESG Risk Ratings are designed to help investors identify and understand financially material ESG risks in their portfolio companies and how that risk might affect performance. The ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. Comparable across all industries, Sustainalytics’ ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk and distinguish between five levels of risk: negligible, low, medium, high and severe.

BVB added that they aim to develop the local ESG infrastructure starting from this first initiative, with the involvement of other market participants, by preparing and publishing presentation materials, guidelines for issuers and by launching new dedicated products.

We have recently published a blog on the importance of ESG practices. To read our blog on ESG click here.