ESG ratings are important management and benchmarking tools for KfW. ESG rating agencies use them to analyse and assess a company’s sustainability performance across the dimensions of Environment, Social and Governance. In addition to environmental management as well as the products and services offered, a wide range of other factors are taken into account. These include, for example, the attractiveness of the working environment, diversity and equal opportunities, sustainable procurement and anti-corruption measures.

Within KfW, ESG ratings are embedded as a KPI in the strategic target system and therefore make our ambitions in the area of sustainability measurable. They serve as a benchmark for assessing sustainability factors in corporate governance, enable benchmarking against peers and the identification of improvements at function-specific or group-wide level. They support early risk detection and can strengthen our external perception as a “bank committed to responsibility” and, as a result, our credibility. Investors use them as a basis for decision-making. In addition, they act as a differentiating factor in competing for talent, business partners and public mandates.

Since 2018, achieving a top position with three leading ESG rating agencies has been part of KfW’s strategic target system. In doing so, KfW currently focuses on the results of the ESG rating agencies Morningstar Sustainalytics, ISS ESG and MSCI. The aim is to continuously be among the top three development and promotional banks within KfW’s “Best of the Best” peer group. To calculate this KPI, KfW has developed a measurement method, which can be accessed here(PDF, 397 KB, accessible).

For years, KfW has been assessed by ESG rating agencies. In the international benchmarking of development and promotional banks, KfW is currently achieving the following results:

Cut-off date related information. There may be interim updates by ESG rating agencies. These can be found under this link.

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