In the ESG rating process, an assessment of risk, policies, and preparedness is best categorized as part of a fundamental assessment. This type of assessment evaluates how well a company is managing its material ESG risks, which includes examining the company's risk exposure, the policies it has in place to manage those risks, and its preparedness to handle potential ESG-related issues. This holistic approach provides a comprehensive view of a company's ESG performance and its ability to sustain long-term value creation.
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