BATON ROUGE – Louisiana State Treasurer John M. Schroder has helped lead state treasurers across the nation in opposition to S&P Global Ratings’ politicization of the financial ratings process. His recent letter to S&P denounces the infiltration of environmental, social, and governance factors (ESG) to set ratings.
“Use of ESG indicators to determine creditworthiness undermines what should be an impartial credit rating system,” he was recently quoted. “It changes the trajectory of the rating system from gauging the ability to pay debt to forcing alignment with policy goals.”
Letters from the state treasurers of Utah, West Virginia, and Idaho have also helped lead the charge against S&P’s new practice.
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