Guide Explains Discrepancies in Corporate ESG Ratings from Providers
1 report, 1 independent
Updated Oct 13
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What happened
The Governance & Accountability Institute released a guide explaining how major providers of corporate ESG ratings assess companies. The guide notes that providers such as MSCI and FTSE Russell use different data sources, scoring scales, and assessment timelines. This difference can result in varying ratings for the same company.
From 3blmedia.com
Why it matters
ESG ratings from these providers are influential in investment decisions, index construction, and fund screening. The varying methodologies used by different providers can create confusion for companies attempting to improve their scores and engage with raters.
From 3blmedia.com
Who's involved
- FTSE RussellBritish provider of stock market indices that offers corporate ESG ratings
- MSCIAmerican financial service provider that offers corporate ESG ratings
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The entities involved
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FTSE Russell
British provider of stock market indices
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MSCI
American financial service provider