ANNOUNCEMENTS
The concept of ESG has been on the rise as investors and stakeholders are now becoming interested in investing in businesses that are fairing well in terms of different dimensions of sustainability and not just financial performance. This sudden demand for ESG related data has led to an increased presence of ESG rating agencies. An ESG rating agency has ben defined as “entities that assess a firm's environmental, social, and corporate governance practices to determine its sustainability.” There is no universal standard rating procedure or methodology to generate an ESG score, therefore each rating agencies employ a unique procedure to get an ESG score. This study tries to examine the ESG Rating methodology followed at ERM’s ESG Fusion-an AI-enabled service that provides on-demand ESG ratings and analysis to help investment professionals make better decisions.
Key words: ESG, ESG rating, ESG rating methodology, ESG score.
