ESG Ratings – Policies and Methodologies
Independence of ESG Rating Activities
As an ESG rating provider subject to Regulation (EU) 2024/3005 on ESG rating activities, MCSR is committed to upholding the highest standards of transparency, integrity, and independence.
The ownership and governance structure of MC Advisory CSR S.r.l. Società Benefit is designed to safeguard the independence, integrity, and objectivity of its ESG rating activities. The Company identifies and manages potential conflicts arising from ownership relationships, commercial activities, services provided to financial intermediaries, relationships with rated entities, and the provision of services other than ratings.
Commercial considerations, client relationships, and compensation structures must not influence ESG rating methodologies, data collection, analytical assessments, or rating results.
The methodology for calculating ESG ratings, as well as the key policies and procedures applied by MCSR to ensure compliance with the principles listed above, are provided for informational purposes.
Methodology for Calculating ESG Ratings
The “Positive Finance Rating System” (TPFRS) is the methodology used by MCSR to calculate its ratings.
MCSR_Positive Finance Methodology
Key Company Policies
The Governance and Controls Policy establishes the procedures for updating MCSR’s governance framework regarding ESG ratings and the procedures for internal controls.
MCSR_ESG Policy, Governance, and Controls
TheIndependence,Due Diligence, andConflicts of Interest(IDDC) Policy establishes the framework for identifying, preventing, and managing conflicts of interest, ensuring the independence, integrity, and objectivity of all ESG rating activities conducted by MCSR.
MCSR_Conflict of Interest Policy
The Policy onthe Review of ESG Methodologies and Change Management (RMM) establishesthe processes by which MCSR defines and implements its ESG rating methodologies
MCSR_ESG Methodology Review Policy
Key Business Procedures
The Scientific Committee is the body responsible for determining the methodologies used to calculate the ESG ratings compiled by MCSR.
MCSR_Regulations_Scientific Committee
The procedure for managing unsolicited ratings outlines how the company collects and processes information related to the financial products being rated. It is MCSR’s primary activity in the area of ESG ratings.
MCSR_Procedure for Unsolicited ESG Ratings
The Engagement Procedure sets forth the procedures by which MCSR interacts with rated companies to collect data and engage with them.
The regulatory disclosure procedure establishes the procedures for updating policies and publishing them on the web.