Rio’s “What your ESG rating really means” provides an instructive overview of the ESG ratings landscape generally, as well as a summary of several of the big-name ESG research and ratings providers - including their methodology, company coverage, investor reach, ESG topics/issues addressed, and rating scales. Coverage includes MSCI, Sustainalytics, Refinitiv, S&P Global, FTSE Russell, and ISS, with secondary ratings providers also identified for further diligence. The guide, which is aimed at educating companies about ratings that are typically marketed to investors, makes clear that although ratings vary considerably and don’t reflect ESG performance, companies may nevertheless benefit from being proactive about their scores.
See “The Role of ESG Ratings Providers in Assessing ESG Performance and Risks” (Chapman and Cutler); our recent reports: “ISS ESG Governance QualityScore: Balancing Disclosure & Risk” and “Study Shows Widespread Use of 3rd Party and Proprietary ESG Ratings”; and additional resources on our Proxy Advisors page and Sustainability/ESG page - Ratings/Raters.
This post first appeared in the weekly Society Alert!