Role in Sustainability Reporting
- As a requirement developer, they request information from reporting organisations in order to prepare sustainability benchmarking indices. [21]
- Example
- S&P Global Corporate Sustainability Assessment (CSA)
- To construct their Global ESG Scores, they utilize an assessment process (Corporate Sustainability Assessment) which involves inviting all the companies in their research universe for an annual company sustainability performance assessment. [33]
- They engage with companies directly through industry-specific questionnaires, to which participants submit in-depth data and supporting evidence – including internal documentation beyond public disclosures, where relevant. [33]
- Companies submit their responses and supporting evidence via an online portal built using their proprietary software. [33]
- Their industry-specific Questionnaires could be found at the following link - Link.
Types of ESG rating providers
- Based on their core business area, ESG rating providers can be broadly categorized as [5] :
- Credit Rating Agencies (CRAs)
- Several CRAs provide ESG ratings as an additional service to their clients.
- These could be credit-focused ESG indicators OR they could be non credit-focused ESG Ratings. [6]
- Credit focused ESG indicators are neither credit ratings nor ESG ratings. They help in highlighting how ESG factors are relevant for the credit ratings. They provide it to enhance the transparency of the impact of ESG factors on credit ratings. [6]
- Example -
- For a detailed comparison of ESG in Credit Ratings and ESG Ratings, check out the following article by UNPRI.
- Benchmark / Index administrators
- Some index providers produce ESG ratings and use them to create ESG indices.
- Example -
- Data vendors
- Data platforms make ESG ratings available to clients subscribing to their services, while fund data providers use ESG ratings to rank funds based on their portfolios.
- Examples
- Specialized firms
- Small specialized providers for which ESG risk, metrics and analytics form the core of their business
- Examples -
- Consultancies
- Some consultancy firms produce ESG ratings on specific aspects or segments of the market (unlisted companies and fund investment strategies respectively) to inform their investors
Comparison of ESG Ratings Providers
- For a comprehensive comparison of different ESG Ratings (as well as ESG scores and credit ratings) products offered in the market, check out the “Comparison between Providers” spreadsheet provided by UNPRI on the following webpage.
Check out ESG / Sustainability Reporting
Check out Government/ Regulators