© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2024
K. NoethThe ESG and Sustainability Deskbook for Businesshttps://doi.org/10.1007/979-8-8688-0261-4_9

9. The ESG Ratings Providers and Indices

Kristyn Noeth1  
(1)
Los Angeles, CA, USA
 

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 ...

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