MSCI Upgrades Energy Recovery’s ESG Rating to AAA

Rhea-AI Summary

Energy Recovery, Inc. (NASDAQ: ERII) has been upgraded by MSCI from an AA rating to its highest rating of AAA in its latest ESG assessment. The assessment recognizes Energy Recovery as one of the highest performing companies within the Industrial Machinery industry in MSCI’s All Company World Index, reflecting robust corporate governance and labor management practices and significant opportunities in clean technology.

Positive

• Energy Recovery's upgrade to AAA rating by MSCI reflects its strong performance in ESG practices, indicating potential positive impact on investor perception and stock performance.

Negative

• None.

SAN LEANDRO, Calif.--(BUSINESS WIRE)-- Energy Recovery, Inc. (NASDAQ: ERII) announced today that MSCI upgraded the company from an AA rating to its highest rating of AAA in its latest environmental, social, and governance (ESG) assessment completed on July 4, 2023.

MSCI’s evaluation recognizes Energy Recovery as one of the highest performing companies within the Industrial Machinery industry in MSCI’s All Company World Index, reflecting robust corporate governance and labor management practices and significant opportunities in clean technology.

MSCI uses a rules-based methodology to measure companies’ management of financially relevant ESG risks and opportunities based on key sector-specific issues. Companies are evaluated based on their exposure to ESG risks and how risk is managed relative to peers. Ratings range from AAA (leader) to CCC (laggard).

The recognition comes just three years after initially being rated BBB by MSCI, showcasing the company’s consistent and rapid improvements across core metrics.

“Sustainability and resilience have always been central to our business, from the technologies we develop for customers, to the various ways we manage our day-to-day operations,” said Robert Mao, Chairman of the Board, President, and Chief Executive Officer of Energy Recovery. “This independent recognition of our work is welcome, and we are excited about what the future holds for us as we continue to expand our pressure exchanger technology into new industries.”

MSCI ESG Research provides in-depth research, ratings, and analysis of thousands of companies to provide insights to institutional investors. Learn more about MSCI here.

DISCLAIMER: The use by Energy Recovery of any MSCI ESG Research LLC, or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks, or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Energy Recovery and its affiliates by MSCI. MSCI services and data are property of MSCI, or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

About Energy Recovery

Energy Recovery (NASDAQ: ERII) creates technologies that solve complex challenges for commercial and industrial fluid-flow markets worldwide. Building on our pressure exchanger technology platform, we design and manufacture solutions that make industrial processes more efficient and sustainable. What began as a game-changing invention for desalination has grown into a global business accelerating the environmental sustainability of customers’ operations in multiple industries. Headquartered in the San Francisco Bay Area, Energy Recovery has manufacturing and research and development facilities across California and Texas with sales and on-site technical support available globally. For more information, please visit www.energyrecovery.com.

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Source: Energy Recovery, Inc.

FAQ

What is the latest rating upgrade for Energy Recovery, Inc. by MSCI?

Energy Recovery, Inc. has been upgraded from an AA rating to its highest rating of AAA in MSCI's latest ESG assessment.

What does the MSCI assessment recognize Energy Recovery for?

MSCI's assessment recognizes Energy Recovery as one of the highest performing companies within the Industrial Machinery industry, reflecting robust corporate governance and labor management practices and significant opportunities in clean technology.

How does MSCI evaluate companies' management of ESG risks and opportunities?

MSCI uses a rules-based methodology to measure companies' management of financially relevant ESG risks and opportunities based on key sector-specific issues.

Who commented on Energy Recovery's recognition by MSCI?

Robert Mao, Chairman of the Board, President, and Chief Executive Officer of Energy Recovery, commented on the independent recognition of their work.