A–CCC
Scales
Common rating scales range from AAA to CCC.
ESG ratingsexplained
Demystify MSCI, Bloomberg, ISS, and more.
ESG ratings summarise how agencies view a company’s sustainability performance. This page explains what ESG ratings are, what methodologies include, and how to prepare for rating reviews.
ESG ratings explained
An ESG rating aggregates available data to score how a company manages environmental, social, and governance risks/opportunities.
Multi
Multiple providers
ESG ratings are issued by many firms, each using different methodologies.
360°
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Ratings aggregate environmental, social, and governance signals.
Key focus areas
Methodology review. Each agency publishes a methodology with indicators and weightings.
Data inputs. Ratings use public reports, disclosures, and surveys.
Engagement. Companies can review draft results and provide clarifications.
Ongoing updates. Ratings change as new information becomes available.
WHY IT MATTERS
Why ESG ratings matter
Investor signals. Ratings influence capital allocation.
Benchmarking. Helps compare performance vs. peers.
Disclosure discipline. Encourages consistent reporting.
Stakeholder communications. Ratings summary helps answer customer + supplier questions.
HOW TO ACT
How to prepare
- Map target agencies. Identify which ratings matter (MSCI, Bloomberg, ISS, etc.).
- Collect supporting data. Compile metrics, policies, and proof for each indicator.
- Engage with analysts. Respond quickly to questionnaires or clarifications.
- Close gaps. Log improvement plans inside RunSustainably.
MEASUREMENT
Measurement + reporting
- Rating tracker. Track scores, dates, and commentary by agency.
- Improvement roadmap. Tie actions to indicators needing work.
- Communication plan. Prep talking points for investors and sales teams.
- Data governance. Ensure all evidence is accurate and audit-ready.
Action ideas
Create an ESG rating brief. Summarise scores, methodologies, and next steps for leadership.
Host analyst days. Invite rating agencies to learn about new initiatives.
Publish clarifications. Share context when ratings omit recent improvements.
GLOSSARY SNAPSHOT
Terms to know
ESG rating. A score summarising sustainability performance.
MSCI / Bloomberg / ISS. Major ESG rating providers.
Controversy. Negative events that can lower ratings.
FAQS
ESG ratings explained FAQs
What is an ESG rating?
A score from agencies like MSCI, Bloomberg, ISS, and Sustainalytics evaluating ESG performance.
Do ESG ratings affect investors?
Yes—many investors use ratings to screen or benchmark companies.
How do we improve ratings?
Address indicator gaps, provide data, and communicate progress.
Where do we store rating data?
RunSustainably can hold scorecards, evidence, and improvement plans.
Drova RunSustainably unites objectives, approvals, and reporting so ESG stories stay credible.
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