Rating Solutions
Standard Ethics operates exclusively under an Applicant‑Pay model, providing ratings only to entities that formally request the Standard Ethics Rating (SER).
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 and analyses carried out by the Agency’s analysts.
Today’s ESG market is saturated with automated scoring tools—rapid, standardised, and available at very low cost. The Standard Ethics Rating is fundamentally different. Each rating requires several weeks of analytical work and the involvement of multiple staff members, amounting to roughly forty man‑days. The outcome is a detailed evaluation of the entity’s ESG positioning, including strategic recommendations, areas for improvement, and a gap analysis against international sustainability guidelines. For entities seeking a genuine understanding of their current position—and their potential trajectory—the SER functions as a governance instrument rather than a label.
The Standard Ethics Rating (SER) is a radically different product. The Standard Ethics Rating (SER) can also be defined as an ‘ESG compliance rating’ in accordance with the definition set out in the EU Impact Assessment Report accompanying the Proposal for a Regulation of the European Parliament and of the Council on the Transparency and Integrity of Environmental, Social and Governance (ESG) rating activities”, 13 June 2023, p. 94.
The Standard Ethics Rating (SER) is based exclusively on the voluntary sustainability guidelines issued by the three main international bodies:
- United Nations (UN) — including principles derived from the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the Sustainable Development Goals (SDGs), the 2030 Agenda and a range of multilateral environmental and social treaties.
- Organisation for Economic Co-operation and Development (OECD) — including the OECD Guidelines for Multinational Enterprises and the OECD/G20 Principles of Corporate Governance.
- European Union (EU) — including EU strategies and directives related to corporate governance, the green and digital transition.
Solicited Standard Ethics Ratings (Solicited SER)
The Agency’s commercial offering is straightforward and simple, and comprises three ratings:
Corporate SER — for large companies (legal entities)
SME SER — for SMEs (legal small to medium enterprises)
Security SER — for financial instruments
The outcome of the analysis carried out by the Agency is expressed in nine letter grades from "EEE" to "F", which measure the company's level of compliance with international ESG recommendations.
The Corporate Standard Ethics Rating (SER)
The Corporate Standard Ethics Rating (SER) is assigned to larger corporate entities.
The process, which is set out in a contract and regulated, offers: (1) a direct relationship with the team of analysts; (2) internal guidelines containing recommendations; (3) a Final Report for external use.
The process comprises the following stages: kick-off meeting → information gathering (Brief 1) → assessment period → analysis and discussion with the applicant (Brief 2 / wrap-up meeting) → issuance of the Final Report and rating proposal → approval by the IRC (Independent Rating Committee) → pre-notification to the assessed entity → publication. It is valid for 12 months from the date of issue and is renewable prior to expiry. If not renewed, the rating ceases on the natural expiry date.
The Agency also issues unsolicited Corporate SERs. 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. They are not ratings for commercial use but serve exclusively statistical and scientific purposes. Unsolicited SERs are funded entirely by the Agency and grouped into clusters — sets of entities that are homogeneous by sector or characteristics. In this case, no additional documents are required apart from the public announcement via press release and the summary assessment; the timeline for the process (analysis, approval and publication) is therefore shorter than for solicited SERs.
Both solicited and unsolicited Corporate Standard Ethics Ratings are based on the same methodology, and the processes are always managed by dedicated analysts. In the case of unsolicited Corporate SERs, and prior to publication, the Agency sends the rated entity a pre-notification to allow it to review the data collected and anticipate the results of the assessment.
The unsolicited Corporate SER remains valid on an ongoing basis until the entity is revoked or excluded from the relevant Cluster. In the absence of any communication, the most recent rating assigned is deemed valid. The latest action is published on the Agency’s website, accompanied by a press release.
The SME SER
It is available on a solicited basis (upon request) and is intended solely for SMEs.
Corporate SER and SME SER (both for legal entities) are methodologically equivalent: the only difference concerns the documentation provided to the client. In the case of the SME SER, Guidelines containing analyst 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.
The Security Standard Ethics Rating (SER)
This rating is available on request only.
It is a type of rating that is methodologically distinct from those for legal corporate entities, even though the same issuance process is followed. 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.
The analysis phase consists of two stages:
- Baseline Rating: if the issuer already has a valid Corporate SER, this serves directly as the starting point (Baseline Rating). Otherwise, a comprehensive analysis is carried out to assign one.
- Assessment of the instrument and the proceeds (general-purpose proceeds): Analysts assess the proportion of proceeds allocated, directly or indirectly, to value-added sustainability strategies, taking into account the sector and the social and environmental impacts.
The Security SER uses the same proprietary algorithm as the Corporate SER, supplemented by an additional variable that incorporates the outcome of the assessment of the instrument.
Why the Standard Ethics Rating (SER)©?
The key advantages of an assessment and a Standard Ethics Rating (SER) can be clearly summarized in:
- Anticipation - EU, OECD and UN voluntary guidelines on Sustainability and governance anticipate future national and OECD legislative requirements.
- Independent Assessment - For many investors and analysts, companies that apply for a SER demonstrate seriousness and excellence because a SER is based on a truly independent assessment performed by a specialised agency.
- Improved relationships - Being assisted by an ESG rating agency motivates stakeholders and employees to cooperate with their companies to face common and constructive challenges by improving relationships in order to achieve optimum internationalisation.
- Clear references - EU, OECD and UN voluntary guidelines are clear references for the economic world. The market values each effort to comply with these guidelines. In relation to other approaches to Sustainability that are less measurable and comparable, corporate communication benefits in terms of incisiveness and clarity.
- Credibility and reputation - The Standard Ethics Rating 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. It therefore strengthens relationships with customers and shareholders.
