ESG ratings have become a key benchmark for investors, regulators, and customers to evaluate how well companies manage long-term environmental, social, and governance (ESG) risks. Among these standards, the MSCI ESG Rating is one of the most widely recognized globally—used by asset managers and analysts to assess companies’ resilience to issues like climate change, labor practices, and corporate ethics.
What is an MSCI ESG rating?
MSCI ESG Ratings aim to measure a company’s resilience to long-term ESG risks. Companies are scored on a scale ranging from AAA (leader) to CCC (laggard), relative to industry peers. Ratings are based on a company’s exposure to ESG risks and its ability to manage those risks effectively. MSCI assesses multiple factors, including:
- Environmental: Exposure to carbon-intensive sectors, environmental policies, and resource efficiency
- Social: Labor practices, customer protection, product safety, and community impact
- Governance: Board independence, shareholder rights, and transparency in management practices
A higher rating signals to investors that the company is well-positioned to manage ESG challenges and seize opportunities in a changing business environment.
Why Security Bank’s ‘A’ rating stands out
Recently, MSCI upgraded Security Bank (PSE:SECB) to an ‘A’ rating, making it the only Philippine bank to hold this score today. This positions the Bank on par with leading banks in the Asia-Pacific region for ESG risk management.
MSCI cited the following as key drivers of the upgrade:
- Enhanced corporate governance: Stronger Board oversight, improved transparency, and better executive accountability practices
- Leadership in consumer protection: Top-tier performance in complaint resolution and customer data protection
- Robust cybersecurity measures: Strong controls around encryption, access management, and information security standards
- Refined ESG risk oversight in lending: Updated sustainability framework to moderate exposure to environmentally intensive sectors
“Being the only Philippine bank with an MSCI ESG ‘A’ rating is a clear signal that our governance, risk management, and sustainability practices are helping us realize our vision to be the best-in-class in sustainable banking,” said Sanjiv Vohra, President and CEO of Security Bank. “An MSCI ‘A’ rating is not just a badge—it’s a sign that we are managing ESG risks as effectively as the best in our industry.
Why it matters for customers and investors
For customers, an MSCI ‘A’ rating means the Bank is building systems and safeguards that protect their interests and the environment over the long term. For investors, it signals resilience and strategic foresight in navigating regulatory, environmental, and societal shifts.
The MSCI upgrade is one of several advancements in the Bank’s sustainability agenda this year. In May, the Bank became the first Philippine bank to join the Alliance for Green Commercial Banks, a global initiative spearheaded by the International Finance Corporation (IFC) and the Hong Kong Monetary Authority to accelerate sustainable banking practices.
Additionally, the Bank partnered with IFC to expand its green financing portfolio and strengthen its institutional sustainability framework—enabling greater support for renewable energy, energy efficiency, and climate-resilient projects.
These developments, combined with the MSCI ESG ‘A’ rating, reinforce Security Bank’s position as a forward-looking organization committed to building a sustainable and inclusive economy.
