New York-based index provider MSCI Inc has raised Covestro AG’s sustainability rating from BBB to A.
According to the German speciality materials supplier, MSCI upgraded the rating as a result of Covestro’s increased focus on sustainable product solutions and technologies as well as improvement in safety standards.
“We are very pleased about the new MSCI rating. This makes our stock more enticing for investors interested in sustainability,” said CFO Thomas Toepfer in a 13 Aug statement.
MSCI evaluates companies annually according to ESG (environmental, social, and corporate governance) standards and helps investors identify opportunities and risks in portfolios.
Covestro has an ambitious environmental strategy which incorporates UN’s “sustainable development goals”.
The company aims to focus 80% of its R&D expenditure on achieving those goals by 2025.
In line with those goals, Covestro supplies materials for wind turbines and lightweight materials for the automotive sector, while using alternative feedstock such as CO2 in its own production process.
In addition, the company has set ambitious goals for reducing greenhouse gas emissions, planning to halve its emissions by 2025, compared to 2005 figures.