ESG ratings display modestly positive correlation with the overall fundamental scores, profitability and balance sheet strength, while there is no significant relation between ESG ratings and growth scores.
0.50
0.50
0.50
0.50
0.40
0.40
0.40
0.40
0.30
0.30
0.30
0.30
0.20
0.20
0.20
0.20
0.10
0.10
0.10
0.10
0.00
0.00
0.00
0.00
-0.10
-0.10
-0.10
-0.10
-0.20
-0.20
-0.20 6
7
8
9
10
6
ESG Rating (7+B, 8+A, 9+AA, 10+AAA)
7
8
9
10
-0.20
ESG Rating (7+B, 8+A, 9+AA, 10+AAA)
Exhibit 2.03: ClearBridge ESG Ratings vs. Standardized Overall Fundamental Scores
Exhibit 2.04: ClearBridge ESG Ratings vs. Standardized Profitability Scores
As of February 2021. Sources: S&P Capital IQ, Credit Suisse HOLT, ClearBridge Investments. Bubble size reflects number of securities in each cohort.
As of February 2021. Sources: S&P Capital IQ, Credit Suisse HOLT, ClearBridge Investments. Bubble size reflects number of securities in each cohort.
0.50
0.50
0.50
0.50
0.40
0.40
0.40
0.40
0.30
0.30
0.30
0.30
0.20
0.20
0.20
0.20
0.10
0.10
0.10
0.10
0.00
0.00
0.00
0.00
-0.10
-0.10
-0.10
-0.10
-0.20
-0.20
-0.20 6
7
8
9
10
ESG Rating (7+B, 8+A, 9+AA, 10+AAA)
-0.20 6
160
7
8
9
10
ESG Rating (7+B, 8+A, 9+AA, 10+AAA)
Exhibit 2.05: ClearBridge ESG Ratings vs. Standardized Balance Sheet Strength Scores
Exhibit 2.06: ClearBridge ESG Ratings vs. Standardized Growth Scores
As of February 2021. Sources: S&P Capital IQ, Credit Suisse HOLT, ClearBridge Investments. Bubble size reflects number of securities in each cohort.
As of February 2021. Sources: S&P Capital IQ, Credit Suisse HOLT, ClearBridge Investments. Bubble size reflects number of securities in each cohort.
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