8 Major ESG Rating Agencies

Question 1

Sustainalytics

Answer 1

Focus : ESG Risk Ratings measure how well a company manages material ESG risks.

Methodology : Analyzes exposure to risks and the effectiveness of risk management, assigning a risk severity score (negligible to severe)

Application : Widely used by investors for ESG integration and screening

Question 2

MSCI

Answer 2

Focus : ESG Ratings (scale: AAA to CCC) assess company resilience to ESG risks.

Methodology : Scores companies based on industry-specific ESG risks and management performance across 37 ESG key issues

Application : Provides benchmarks for sustainable investment strategies

Question 3

S&P Global

Answer 3

Focus : ESG Scores and Dow Jones Sustainability Indices (DJSI)

Methodology : Utilizes the Corporate Sustainability Assessment (CSA) to evaluate companies on environmental, social and governance practices, with sector-specific focus

Application : Recognized for assessing global leaders in sustainability

Question 4

CDP

Answer 4

Focus : Climate, water and forest impact disclosure and scoring (A to D-)

Methodology : Based on self-reported data collected through detailed questionnaires aligned with TCFD recommendations

Application : Used by stakeholders to evaluate environmental transparency and performance

Question 5

FTSE Russell

Answer 5

Focus : ESG Ratings and FTSE4Good Index Series for sustainable investment

Methodology : Scores companies on their ESG performance and alignment with UN Sustainable Development Goals (SDGs)

Application : Guides investors in identifying ESG-aligned companies

Question 6

GRESB (Global ESG Benchmark for Real Assets)

Answer 6

Focus : ESG performance of real estate and infrastructure sectors

Methodology : Benchmarking based on surveys covering energy use, carbon emissions, waste management and stakeholder engagement

Application : Widely used in the property and infrastructure sectors for sustainability benchmarking

Question 6

Hang Seng Index (HSI)

Answer 6

Focus : ESG Ratings for Hong Kong-listed companies

Methodology : Evaluates companies on their environmental management, social responsibility and corporate governance practices, emphasizing regional ESG concerns

Application : Serves regional investors seeking ESG-aligned portfolios

Question 7

Bloomberg

Answer 7

Focus : Provides raw ESG data, tools and analytics for in-depth ESG assessment

Methodology : Aggregates company -reported data (e.g. emissions, diversity) and integrates ESG metrics with financial performance data

Application : Supports customizable ESG analysis for investors and corporations