ESG ratings mismatch and possible solutions

Currently, a number of the most popular ESG ratings have already been formed, but there are significant differences in the assessment of companies and, as a consequence, the final results. 

In the new material we have analyzed the main aspects where mismatches are observed and presented possible solutions, as well as international experience in regulating ESG rating providers.

We conclude that in order to solve the problems, it is necessary for regulators to develop standards for non-financial reporting, requirements for ESG rating providers and create a competitive environment in the market of such providers, which will contribute to improving quality and efficiency. 

Suppliers and providers of ESG ratings and ESG data need to ensure transparency, comparability, and reliability of information, including methodologies, valuations, etc.