In addition to publishing ESG reports, companies also need to evaluate their performance in environmental, social, and governance aspects through third-party ESG rating systems. These rating systems provide investors and other stakeholders with a standardized and transparent evaluation tool.
What is ESG rating system?
The ESG rating system is a score or rating obtained by professional institutions based on the evaluation of a company's public and non-public data. These ratings typically cover three aspects: environment (such as pollution control, climate change response), society (such as labor conditions, human rights), and governance (such as board independence, anti-corruption measures).
The role of ESG rating
Investment Decision Reference: ESG ratings provide investors with a comprehensive evaluation of a company's sustainability performance, helping them make more informed investment decisions.
Corporate improvement: By understanding their own scores or ratings in ESG, companies can identify areas and opportunities for improvement.
Market competitiveness: Enterprises with high ESG ratings are more likely to win the trust of customers and partners, thereby enhancing market competitiveness.
Major ESG rating agencies
MSCI ESG Ratings: Provides in-depth and comprehensive ESG ratings, covering a wide range of companies worldwide.
S&P Global ESG Scores: Scoring based on publicly available data and information provided by companies, emphasizing transparency.
Sustainability: Based on detailed research reports and data analysis, covering thousands of global enterprises.