Who’s keeping score? — ESG ratings explained
- Daniel Power
ESG ratings are a booming market, with ESG rating provider revenue growing at a CAGR of 38% between 2016 and 2021. But asset managers are unhappy with these providers’ products. According to ESMA’s June 2022 call for evidence, only 23% of respondents were satisfied with the methodological transparency of ESG ratings.
This 9fin Educational goes through the mechanics of ESG ratings, and offers insights into how these are used and their relationship to sustainability-related regulation.