The Top ESG Rating Agencies to Watch in 2024

ESG Rating Agencies: An Overview of Key Players in Sustainable Investment

Now let’s take a look at some of the top ESG rating agencies in Singapore.

Sustainalytics: Analyzing ESG Risk Ratings for Investment Decisions in Singapore

Sustainalytics is a Research Affiliate of Definiens AG, a leading global provider of Informatica software for data management and analytics solutions.
The company provides ESG research and ratings on more than 2,400 stocks across nine sectors in Europe, North America, Asia Pacific, and selected emerging markets.
The company also offers ESG ratings for funds, fixed income securities, and real estate.
Sustainalytics has a team of over 160 analysts who use a proprietary scoring system to rate companies on their ESG performance in Singapore.
Sustainalytics is officially recognized by the UN Principles for Responsible Investment initiative, which helps promote best practices in ESG management.
The firm was founded in 2007.

EcoVadis: Assessing Supply Chain ESG Sustainability for Businesses

EcoVadis is an ESG rating agency that monitors more than 16 million companies worldwide.
The company has a team of over 200 analysts who provide ratings for close to 30,000 products and services in 20 industries.
EcoVadis was founded in 2005.

Rapid Ratings: Integrating ESG Risk into Financial Health Assessments

Rapid Ratings is a financial rating agency that specializes in ESG rating in Singapore.
The company rates the creditworthiness of companies and governments in over 190 countries.
Rapid Ratings was founded in 2000.
The company has a team of over 300 analysts.

Verisight: Transparent ESG Data & Analytics for Informed Investment

Verisight is an ESG rating agency that rates more than 9,000 companies worldwide.
The company provides ratings for eight industries in 32 countries.
Verisight was founded in 2011.

Moody’s ESG Solutions: Comprehensive ESG Assessments in Financial Markets

Moody’s is an ESG rating agency that rates 20,000 financial instruments worldwide. It also publishes research on companies.
The company has a team of over 1,200 analysts working across 50 countries.
Moody’s was founded in 1924.

AES Global: ESG and Sustainability Consulting Services for Performance Enhancement

AES Global produces ESG analysis for companies in over 100 countries. Its reports are free to download but contain advertisements.
The company was founded in 2010.
It has a team of 12 analysts who cover 40 countries worldwide.
AES uses seven core criteria to rate companies: environment, climate change, community engagement, human rights, labor standards, product safety & quality, and corruption.

Pros and Cons of Top ESG Rating Agencies for Investment Strategy

Now that we’ve looked at a few of the top ESG rating agencies, let’s take a look at some of their pros and cons.

Pros: Benefits of Using Leading ESG Ratings for Sustainability

ESG rating agencies can provide a wide range of information on companies, including their environmental, social, and governance performance.
ESG rating agencies are often officially recognized by UN initiatives and other organizations that promote best practices in ESG management.
ESG rating agencies use rigorous analytical methods to rate companies.

Cons: Limitations of Relying on Top ESG Rating Agencies

ESG rating agencies may not be up to date, which can affect their accuracy.
The companies that an ESG rating agency covers might change over time.
Rating agencies should be used with caution (as with any other type of research).
It’s important to do your homework before you invest.
ESG rating in Singapore can vary significantly between rating agencies, so it’s important to compare the information that each agency provides.
You should be informed about how ESG rating agencies operate and what their affiliations are beforehand.
ESG rating in Singapore are not legally binding (unlike an official credit rating).
Although they may affect a company’s ability to attract investors, some investors consider them more of an advisory tool than actual financial indicators.

How do ESG ratings impact financial performance of companies

ESG ratings increasingly influence how investors evaluate companies. Firms with strong ESG scores often demonstrate better risk controls, stronger stakeholder relationships, and improved operational efficiency, contributing to long-term financial stability. For a deeper look at how these ratings affect investment decisions and company valuations, explore our 2024 guide to top ESG rating agencies.

Best ESG rating agencies for sustainable investing in Asia

In Asia’s diverse and evolving markets, ESG analysis must reflect both global standards and local context. Leading ESG rating agencies in the region offer nuanced evaluations that help investors make informed, sustainability-focused choices. Discover which agencies stand out in our 2024 list of top ESG rating agencies.

What are the specific environmental factors considered in MSCI ESG ratings

MSCI ESG ratings assess a range of environmental factors, such as greenhouse gas emissions, energy use, water management, and pollution control. These metrics help investors evaluate a company’s exposure to environmental risks. Learn more about MSCI’s methodology in our overview of top ESG rating agencies.

Compare ESG ratings of Refinitiv and Sustainalytics for the technology sector

Refinitiv and Sustainalytics apply distinct ESG rating models, especially when evaluating data privacy, energy use, and governance in the tech industry. Comparing their methodologies offers valuable insights for investors. Visit our guide to ESG rating agencies to understand how each provider approaches the technology sector.

Understanding the governance pillar in ESG ratings and shareholder rights

The governance component of ESG ratings covers board structure, executive compensation, audit quality, and protection of shareholder rights. Strong governance is often linked to better decision-making and accountability. Review how leading agencies score governance in our 2024 guide to ESG ratings.

ESG data providers for carbon footprint analysis and investment decisions

Accurate carbon footprint data is critical for investors seeking to manage climate-related financial risks. ESG data providers offer insights into emissions reporting, energy efficiency, and transition planning. Learn which agencies provide robust carbon data in our overview of ESG rating agencies.

Integrating ESG ratings into a long-term investment strategy for climate change

Using ESG ratings in long-term investment planning helps identify companies better prepared for climate challenges. These ratings support strategies that align financial goals with sustainability objectives. Explore how leading ESG agencies contribute to climate-focused investment decisions in our 2024 agency guide.

Are ESG ratings a reliable indicator of future financial returns

While ESG ratings are not predictive in isolation, companies with higher ratings often show stronger long-term performance and lower operational risks. Learn which ESG agencies provide the most consistent and useful indicators in our review of ESG rating leaders for 2024.