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‘Woke’ ESG Scores From Credit Raters Draw GOP Ire to Muni Market

May 25, 2022, 1:30 PM

Republicans’ growing opposition to the ESG movement is targeting a corner of Wall Street less accustomed to controversy -- the credit rating companies.

S&P Global Inc. unveiled a scoring system for governments on categories like human rights, social integration and low-carbon strategies in March. Moody’s Corp. released its own scoring system, and Fitch Ratings Inc. in a May report said environmental, social and governance concerns factor into 7% of their U.S. public finance ratings.

Complaints quickly followed from Republican governors and treasurers, who said the companies have no business wading into an area that lawmakers see as politics, not finance. ...