Introduction

In early March, Silicon Valley Bank announced that it needed to raise more than $2 billion to shore up its balance sheet. MSCI ESG research had rated SVB Financial Group's parent company at a letter rating of A. In the context of ongoing debate about the role of ESG data and ESG ratings in investment decisions, we will highlight what an ESG rating is and what it is not. We are going to draw a clear line between financially relevant ESG factors and financially relevant financial factors.