In addition to frameworks and standards, ESG ratings are part of the ESG reporting paradigm. ESG ratings are produced by third-party research firms and credit ratings agencies (CRAs) based on proprietary methodologies. They assess a company’s ESG performance and provide scores that are used by market participants in capital allocation decisions.
9.1 Role of ESG Ratings
ESG ratings provide a synthetic indicator of an issuer’s ESG characteristics or exposure to ESG risks. ESG ratings ...