When the idea of ESG was first raised by the UN in 2004, never before had the environmental, social and governance performance of companies been quantified in quite this way.
Despite being the subject of some backlash, ESG remains crucial for businesses looking to pass muster with the vast majority of regulators and investors.
ESG ratings providers have become an important part of this process, acting as the independent arbiters of corporate sustainability performance.
With so many ratings services on offer, some questions have been raised regarding the comparability of ESG scores, but ESG ratings have undeniably contributed to the maintenance of high sustainability standards and transparency across industries.
In this week’s Top 10, Sustainability Magazine spotlights some of the best and most influential ESG ratings providers and delve into what makes them so effective.
10. Sustainalytics
Founded: 1992
HQ: Amsterdam, Netherlands
CEO: Michael Herskovich
Specialty: ESG risk ratings and corporate engagement
Sustainalytics' unique ratings methodology focuses on unmanaged ESG risks that could materially impact enterprise value.
Since being acquired by Morningstar in 2020, the company's integration with the Morningstar ecosystem has continued to drive adoption across retail and institutional investor platforms, providing seamless access to ESG insights alongside traditional investment research.
With coverage exceeding 15,000 companies globally, Sustainalytics' has proven itself to be an essential partner for investors.
9. Bloomberg ESG Data
Founded: 2009 (ESG service)
HQ: New York, US
CEO: Vladimir Kliatchko (Bloomberg Intelligence)
Specialty: Real-time ESG data and analytics
To generate its ESG ratings, Bloomberg uses real-time financial data, helping the firm to create dynamic and market-responsive insights that traditional survey-based providers struggle to replicate.
What makes Bloomberg's platform distinctive is its seamless integration of ESG factors with traditional financial analytics within the familiar Terminal environment, eliminating the need for investors to juggle multiple platforms.
The company's strength lies in its ability to combine alternative data sources, including satellite imagery and social media sentiment analysis, with conventional ESG metrics to provide unique insights unavailable elsewhere.
Bloomberg's emphasis on user-friendly interfaces and customisable dashboards democratises complex ESG data, making sophisticated sustainability analysis accessible to more than 325,000 Terminal subscribers worldwide.
8. CDP
Founded: 2000
HQ: London, UK
CEO: Sherry Madera
Specialty: Environmental disclosure and climate data
CDP (formerly known as the Carbon Disclosure Project) is one of the world's primary environmental disclosure platforms.
One thing that makes CDP stand out from the crowd is its collaborative approach with regulators and policymakers, helping shape emerging disclosure requirements whilst also collecting the data that companies need to meet those requirements.
Its comprehensive coverage of environmental risks beyond just climate, including water security and deforestation assessments, set it apart, providing investors with holistic environmental risk profiles.
CDP's A-List recognition has become a status symbol amongst some companies, with firms investing substantially in sustainability initiatives to achieve top-tier ratings.
7. S&P Global ESG Scores
Founded: 2019 (ESG division)
HQ: New York, US
CEO: Douglas Peterson
Specialty: Credit-integrated ESG assessment
As one of the 'Big Three' ratings agencies, Standard & Poor has the resources necessary to make it one of the most impressive and reliable ESG ratings providers.
S&P is able to integrate its ESG analysis with its credit rating expertise, helping investors to see both perspectives when considering their options.
S&P Global's comprehensive coverage across corporate, sovereign and municipal sectors, combined with real-time ESG monitoring capabilities, positions it as a premier resource for credit-focused sustainable investment strategies that require both depth and breadth of analysis.
6. FTSE Russell ESG Ratings
Founded: 2018 (ESG division)
HQ: London, UK
CEO: Fiona Bassett
Specialty: ESG index construction and ratings
The FTSE is the UK's best known stock exchange index, known for rating, ranking and aggregating data on the most high-profile blue chip companies on the London Stock Exchange.
Naturally, this line of work lends itself well to ESG ratings, with sustainability often regarded as a crucial factor in the value of assets.
FTSE Russell's footing in the world of stocks give its ESG ratings direct influence over hundreds of billions of dollars in passive investment flows worldwide.
The company's strength lies in its Green Revenues classification system, providing detailed analysis of revenue streams from environmental solutions that enables precise exposure to the transition economy.
5. EcoVadis
Founded: 2007
HQ: Paris, France
CEO: Sylvain Guyoton
Specialty: Supply chain sustainability ratings
EcoVadis's success is built on its focus on supply chain sustainability, creating what is calls the world's most comprehensive network of supplier ESG assessments.
It has a collaborative marketplace model where buyers can share supplier assessments which can save on money and time.
The firm's methodology for ratings goes beyond questionnaires, including document analysis, on-site audits and stakeholder feedback.
EcoVadis also has an improvement-focused approach.
Users are offered detailed scorecards and corrective action plans, positioning EcoVadis not only as a ratings provider but also a development partner.
4. ISS
Founded: 1985
HQ: Rockville, Maryland, US
CEO: Gary Retelny
Specialty: Proxy voting and ESG governance
ISS is one of the global economy's leading authorities on corporate governance, offering clients expert proxy advisory services.
Its success comes from its position as one of the definitive authorities on corporate governance, with decades of expertise in proxy advisory services providing deep institutional relationships and trust.
What makes ISS truly distinctive is its integrated approach, seamlessly combining traditional proxy voting recommendations with comprehensive ESG research, creating a holistic view of corporate governance.
The company's strength lies in its ability to directly connect ESG factors to governance outcomes and shareholder value, providing actionable insights that drive real corporate behaviour change through proxy voting influence.
ISS's deep regulatory expertise and established relationships with institutional investors create powerful network effects, making it indispensable for asset managers who need both ESG intelligence and proxy voting guidance from a single, trusted source with proven credibility in shareholder engagement.
3. LSEG
Founded: 2018 (Refinitiv acquisition)
HQ: London, UK
CEO: David Schwimmer
Specialty: Financial market ESG data integration
LSEG occupies a rather unique position as both a major financial market infrastructure provider and comprehensive ESG data platform.
LSEG's rating subsidiary (formerly known as Refinitiv) possesses an extensive database powered by a huge variety of sources including satellite imagery and advanced analytics, allowing it to offer insights that traditional survey-based approaches can't.
Its scores pull from publicly available data sources and use what they call an "exposure-weighted" approach that gives more importance to the ESG issues that matter most for each specific company.
Transparency and data lineage an integral part of the ratings process at LSEG, with the firm providing a detailed explanation as to the rationale behind its scores, breaking down the environmental, social and governance into multiple subcategories and scoring companies on each of them.
2. MSCI
Founded: 1969
HQ: New York, US
CEO: Henry Fernandez
Specialty: Integrated ESG and credit risk solutions
US-based finserv company MSCI has been providing ESG ratings for years, rating companies on a scale of AAA to CCC in terms of exposure to ESG risks. It is an approach which factors in how well the company manages those risks compared to their peers, helping investors spot potential portfolio risks and opportunities before they hit the bottom line.
In 2024, MSCI and Moody's announced a strategic partnership that would see their unique strengths dovetail, furthering bolstering MSCI's service.
Since the agreement, MSCI has had access to Moody's vast database, whilst Moody's has integrated MSCI's industry-leading ESG ratings and sustainability data into solutions for its banking, insurance and corporate clients.
“This is a real win-win, as Moody’s customers gain access to MSCI’s renowned ESG content and MSCI customers will gain access to Moody’s world-class risk assessment expertise, data and insights," said Rob Fauber, President and CEO of Moody's, when the partnership was first announced.
Access to Moody's comprehensive Orbis database, containing information on more than 500 million entities, gives MSCI the ability to expand its ESG coverage for private companies while also exploring new opportunities in the private credit market.
1. Sustainable Fitch
Founded: 2024
HQ: New York, US
CEO: Paul Taylor
Specialty: Fixed income ESG ratings and credit-integrated analysis
Sustainable Fitch is a subsidiary of Fitch Group, one of the 'Big Three' ratings agencies, and whilst the platform has only been running since 2021 it has picked up several accolades for its services already.
In essence, Sustainable Fitch provides ESG ratings that cover companies and financial instruments globally, giving investors detailed breakdowns of ESG performance.
The service aims to help investors understand not just overall ESG performance, but also distinguish between a company's ESG impact, outcomes and operational performance across specific areas.
Sustainable Fitch's work is built around Fitch Group's century-long reputation in credit analysis and, as such, it is steeped in quality and expertise.
Its focus on leveraged finance and real estate sectors, combined with its comprehensive coverage of structured products, positions it as a go-to provider for fixed income investors seeking granular, credit-focused ESG intelligence that directly informs investment decisions.
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