Redigo Carbon vs Sustainalytics: different roles in the ecosystem
Neutral comparison of Redigo Carbon and Sustainalytics. A Sustainable Finance Platform and an ESG Ratings Provider solve fundamentally different problems — here's how to think about both.
- Redigo Carbon is a Sustainable Finance Platform. Sustainalytics is an ESG Ratings Provider owned by Morningstar. They are not substitutes.
- Sustainalytics produces third-party ESG risk ratings and Second Party Opinions used by investors and lenders in their credit and investment decisions.
- Redigo Carbon is used by banks and their borrowers to originate and manage Sustainability-Linked and Green Loans — measuring, planning and reporting the sustainability performance itself.
- Where Sustainalytics issues an SPO on a sustainable-finance instrument, Redigo Carbon is often the operational system producing the underlying data.
Sustainalytics rates and opines on sustainability performance from the outside. Redigo Carbon operates the workflow that produces the underlying performance. The two are complementary, not competing.
Classifying every organisation before we compare features.
Sustainalytics is a rating and opinion provider — an external assessor. Redigo Carbon is operational software. A bank using Redigo Carbon to structure an SLL might still commission an SPO from Sustainalytics (or another qualified reviewer) on the same transaction. The two coexist rather than compete.
Redigo Carbon
This is usSoftware that connects sustainability data with financial products — Sustainability-Linked Loans, Green Loans, transition finance and disclosure workflows for banks and their borrowers.
Sustainable Finance Platform supporting financial institutions and their borrowers through carbon footprint management, sustainability reporting, decarbonisation planning, Green Loans and Sustainability-Linked Loans. Integrates with Audelya and its network of qualified independent reviewers and verifiers to streamline external assurance workflows. Redigo Carbon does not itself issue Second Party Opinions or perform independent verification.
Sustainalytics
Organisations that assess and score company ESG performance for investors and lenders (e.g. Sustainalytics, MSCI ESG, S&P Global CSA).
A Morningstar company that provides ESG Risk Ratings, ESG research, industry reports and Second Party Opinions on green, social, sustainability and sustainability-linked instruments. Public information indicates its primary users are institutional investors, asset managers and issuers evaluating capital-markets transactions.
Positioning each organisation along the SLL journey.
This lifecycle reflects the workflow behind a typical Sustainability-Linked Loan (SLL). It is a simplification — every deal is unique — but it makes the roles of different platforms and independent providers easier to compare.
- 1BorrowerRedigo Carbon
- 2Carbon FootprintRedigo Carbon
- 3Materiality AssessmentRedigo Carbon
- 4KPI & SPT DefinitionRedigo Carbon
- 5Second Party OpinionSustainalytics
Sustainalytics is one of several qualified independent SPO providers. Redigo Carbon integrates with Audelya's network of reviewers to streamline the workflow; the SPO itself is issued by an independent third party.
- 6Loan OriginationRedigo Carbon
- 7Annual VerificationHandled outside these platforms.
Performed by qualified independent verifiers. Redigo Carbon streamlines the workflow via Audelya's network.
- 8Performance MonitoringRedigo Carbon
- 9ReportingRedigo Carbon
Side-by-side capabilities — with honest caveats.
The two organisations do fundamentally different things. This table highlights primary roles rather than a like-for-like feature race. Always check current scope in each organisation's own documentation.
| Redigo Carbon | Sustainalytics | |
|---|---|---|
| Primary category | Sustainable Finance Platform | ESG Ratings Provider |
| ESG Risk Ratings | No — not the role of a Sustainable Finance Platform | Yes — flagship product |
| Second Party Opinions (SPOs) | Streamlined via Audelya's network; Redigo does not issue SPOs itself. | Yes — SPOs on green, social, sustainability and SLL instruments |
| Operational Scope 1-3 measurement | Yes | Not the primary focus — check provider documentation |
| SLL KPI & SPT definition workflow | Yes | No — reviews instruments after they are structured |
| Green Loan use-of-proceeds tracking | Yes | No |
| Bank-borrower collaboration workflow | Yes | No |
| Independent verification of KPI performance | Streamlined via Audelya's network — Redigo does not perform verification itself. | Offers assurance-adjacent services — check current scope in vendor documentation |
Who each solution is actually built for.
Redigo Carbon is a strong fit for
Banks and their borrowers who need an operational system to structure, originate and manage Sustainability-Linked and Green Loans.
- A commercial bank building an SLL programme across many borrowers.
- An SME or mid-market borrower producing bank-ready KPI data and decarbonisation plans.
- Enterprises needing a system of record across footprint, plan and lending.
Sustainalytics is a strong fit for
Investors, lenders and issuers needing third-party ESG assessment and independent Second Party Opinions on sustainable-finance instruments.
- An asset manager screening ESG risk across a portfolio.
- An issuer needing an SPO on a Green, Social or Sustainability-Linked Bond or Loan.
- A bank using external ESG ratings as one input into credit decisions.
Practical scenarios and how each solution behaves.
Structuring an SLL
Redigo Carbon supports the operational workflow (KPIs, SPTs, data, plan). If the transaction needs an SPO, an independent provider such as Sustainalytics is engaged — the two are complementary.
Investor ESG screening
Sustainalytics is a common data source. Redigo Carbon is not designed as an investor screening tool.
Corporate footprint and lending workflow
Redigo Carbon handles this end-to-end. An external ESG rating from Sustainalytics may still be consumed as a separate signal.
Answers to the most common questions.
Does Redigo Carbon compete with Sustainalytics?
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No. They are in different categories — Sustainable Finance Platform vs ESG Ratings Provider — and solve different problems.
Can Redigo Carbon replace an SPO from Sustainalytics?
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No. A Second Party Opinion must be issued by an independent third party under LMA/ICMA guidance. Redigo Carbon does not issue SPOs; it integrates with Audelya's network of qualified independent reviewers to streamline the workflow.
Do banks use both?
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Yes, this is common. A bank might use Redigo Carbon to originate and manage SLL transactions, while consuming Sustainalytics ratings or SPOs as independent third-party inputs.
Which one is 'better'?
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Neither. The right choice depends on the job. Choose an ESG Ratings Provider for external assessment and opinions. Choose a Sustainable Finance Platform to actually structure and manage sustainable-finance products.
Where the facts on this page come from.
Book a 30-minute walkthrough with the team. We will tailor it to your role — bank, borrower or advisor.
Related pages in the library.
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Neutral buying guide for banks evaluating sustainable finance platforms. Ecosystem map, evaluation criteria, worked examples and questions to ask every vendor.