ESG Rating

An ESG rating represents the assessment of a business partner or a physical asset with respect to environmental, social, or governance (ESG) sustainability.

Data Model

You can use the following entities in the Sustainability ESG Rating diagram to store ESG ratings in the data model:

  • Internal Environmental Rating

  • Internal Governance Rating

  • Internal Social Rating

  • External Environmental Rating

  • External Total ESG Rating

  • Total ESG Rating as a weighted average of the three internal ESG ratings.

The specifications of the Rating entity are assigned to the Business Partner entity or to the Physical Asset entity.

  • Business partners are evaluated according to the ESG ratings, either by an external ESG rating covering all three ratings (total ESG rating), or by internally evaluating all three ratings.

  • Physical assets are evaluated according to environmental sustainability by an external or internal environmental rating. This information might be combined with information about the social and governance ratings for the business partner that owns the asset.

You can use the Rating Overridden by External Rating relationship to specify which rating is overridden by an external rating.

The Individual Ratings Used for Total ESG Rating Assignment assignment table defines which ratings are used for the total ESG rating. The calculation method is stored outside of SAP Financial Services Data Management.

The following figure is an example of how ESG ratings can be stored in the conceptual data model (CDM):

More Information

For more information, see the related entities and their definitions in the data model represented in SAP PowerDesigner.