Many people have asked us why our ratings differ from those of other rating agencies. We are, therefore, starting a series on “Rating Differences” to help our subscribers understand the underlying reasons why ratings may differ. 

We start with the basics: How different raters categorize risk.

Differences in categorizing risk

One important difference between three major rating agencies – BeZero, Calyx Global and Sylvera – is the way in which risks are defined and categorized. This can lead to differentiated overall scoring. The table below illustrates how three rating agencies define and categorize risks compared to the ICVCM’s Core Carbon Principles.