GMI Ratings maintains broad coverage of the environmental, social, governance (ESG) and accounting-related risks affecting the performance of public companies. The firm publishes two proprietary ratings of public companies:
- Our Environmental, Social and Governance (ESG) ratings for nearly 6,000 companies worldwide incorporate 150 ESG KeyMetrics® to help investors assess the sustainable investment value of public companies.
- Our Accounting and Governance Risk (AGR®) ratings for approximately 18,000 public companies worldwide are based on risk factors most clearly associated with performance. AGR ratings reflect accounting and governance practices statistically associated with an elevated risk of securities class-action litigation, financial restatements, SEC enforcement actions, bankruptcies and other events likely to cause sharp drops in equity value.
The ESG and AGR ratings complement traditional security analysis and financial risk modeling. They help GMI clients identify and quantify extra-financial risks stemming from variables not yet incorporated into dominant valuation methodologies and approaches to capital allocation.
GMI Ratings updates its data and research regularly based on latest news, regulatory filings and high-impact events that warrant rating revisions. We also implement periodic algorithmic adjustments to our ESG and AGR models to continually improve their predictive power in light of emerging trends.