MSCI raises Covestro’s sustainability rating
MSCI, a leading index supplier, has raised Covestro’s sustainability rating from BBB to A.
The financial services provider says the reason for the upgrade was Covestro’s stepped up focus on sustainable product solutions and technologies as well as continual improvement in safety standards.
MSCI evaluates companies annually according to environmental, social, and corporate governance (ESG) standards and helps investors identify opportunities and risks in portfolios.
Covestro believes it has integrated the Sustainable Development Goals of the United Nations into its strategy.
By 2025, 80 percent of research and development expenses will be targeted in areas that contribute to achieving these goals.
Covestro already supplies materials for wind turbines and lightweight materials for the automotive sector and uses alternative feedstock such as CO2 in its own production process.
The company has also set ambitious goals for reducing greenhouse gas emissions, another factor emphasised by MSCI, by 2025, emissions per metric ton of product manufactured will be cut by half from 2005 figures.
Dr. Thomas Toepfer, CFO, said: “We are very pleased about the new MSCI rating. This makes our stock more enticing for investors interested in sustainability."