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Corporate reporting has become essential for stakeholders including investors, customers, workforce and communities to understand the company’s overall performance regarding environmental, social and governance dimensions. These financial and non-financial disclosures that are publicly available become the basis for the ESG rating of a company provided by the ESG rating providers. With the increasing dependency of investors on these ESG ratings, there has been an increase in the no. of rating providers in the corporate reporting world creating confusion in regards to the different ratings provided to the same company by different rating providers. This study provides an analytical overview of the selected ESG rating providers, understanding the different methodologies and criteria used by them for measuring a company’s ESG performance. Through the study, extensive gap analysis has been conducted for a company to understand the gaps in their disclosures specific to the ESG rating and map the expectations of different rating providers.
Key words: Environmental disclosures, ESG reporting, ESG rating, ESG rating providers, ESG investing, MSCI, DJSI, Sustainalytics, Refinitiv.
