Standard Ethics

Ratings Solutions

The Standard Ethics Rating (SER) has been requested by some of Italy and the world's largest listed companies. For over twenty years, it has been a symbol of credibility and high standing and provides a basis for comparison with competitors.

The Agency’s commercial offering is straightforward and simple, and comprises three ratings:

Corporate SER — for large companies (legal entities)

The Corporate Standard Ethics Rating (SER) is assigned to larger corporate entities. It is solicited when requested and paid for by an Applicant (entity). Unsolicited ratings are issued to maintain or update Agency clusters. These are ratings issued independently by the Agency, with no commercial relationship between the Agency and the rated entity, based solely on publicly available sources.

SME SER — for SMEs (for small to medium legal entities)

It is available on a solicited basis (upon request) and is intended solely for small to medium entities. Corporate SER and SME SER are methodologically equivalent: the only difference concerns the documentation provided to the client. In the case of the SME SER, Guidelines containing the recommendations are not drawn up: the client is provided solely with the Final Report. The costs and turnaround times for the SME SER are consequently lower than for the Corporate SER.

Security SER — for financial instruments

The Security SER covers general-purpose debt instruments — instruments whose proceeds are not earmarked exclusively for ‘green’ or ‘social’ projects and are not governed by other ad hoc ESG standards — and may relate to a single debt issue, a consistent programme of issues or loans, or a single financial instrument, including derivatives. It is issued solely upon request.

 

OUTCOME AND SCOPE of the Standard Ethics Rating (SER)

The outcome of the analysis carried out by Agency analysts is the Standard Ethics Rating (SER), expressed in nine letter grades from "EEE" to "F". These measure a company’s level of compliance with international ESG recommendations and related reputational vulnerability.

Under Regulation (EU) 2024/3005, the SER is classified as an ESG opinion. It is not an automated score generated by Artificial Intelligence, nor is it based on questionnaires completed by the client. Instead, it reflects the independent assessments carried out by the Agency’s analysts.

The solicited SER is supported by a thorough report and guidelines filled out by internal analysts, complete with details explaining the final assessment.

 

The Applicant can use the rating report and the guidelines for different purposes:

  1. As a Risk Analysis (particularly on reputational risks);
  2. As an Internal gap analysis on corporate governance with strengths and weaknesses;
  3. To improve external communication to investors and stakeholders;
  4. To improve internal communication to employees and collaborators;
  5. To improve environmental and social strategies and reporting.

 

The scope of the SER is not only to assist in improving company structure but also to:

  1. Attract long-term and strategic investors;
  2. Be included in Standard Ethics' clusters;
  3. Offer a benchmark for reputational risks.