The Rate the Raters series is a multi-year research initiative conducted by the ERM Sustainability Institute that examines how companies and investors perceive, engage with, and evaluate ESG rating agencies. It provides a longitudinal view of the ESG ratings landscape, tracking shifts in corporate sentiment, rater performance, and the broader regulatory and market environment over time.

What the series tracks

The series monitors corporate perceptions of ESG rating agencies across several dimensions: the perceived quality and usefulness of individual raters, levels of trust in ESG ratings, the primary drivers of corporate engagement with rating agencies, and corporate preferences for how the ratings landscape should evolve.

Each edition produces rankings of leading ESG raters and tracks changes over time, enabling longitudinal comparison. The series also documents structural changes within the ESG ratings industry, including consolidation through mergers and acquisitions, regulatory developments, methodology changes, and shifts in ownership structures among rating providers.

This edition covers developments since the 2023 report, including direct regulation aimed at ESG rating agencies across multiple jurisdictions, the influence of the EU Corporate Sustainability Reporting Directive (CSRD), the International Sustainability Standards Board (ISSB) framework, and the global backlash against the broader ESG agenda.

Methodology

The 2025 edition draws on a corporate survey fielded between May and July 2025, gathering responses from 386 sustainability professionals across 39 countries and 28 industry sectors. Respondents represent publicly traded and private companies headquartered across four global regions: Asia-Pacific (APAC), Europe, Middle East and Africa (EMEA), Latin America (LATAM), and North America (NA).

The survey was developed using the Alchemer platform and distributed through ERM and Sustainability Institute professional networks. Responses were analysed using Microsoft Excel and R, with descriptive statistics including counts, normalised averages, and frequency distributions.

Survey data were supplemented by targeted in-depth interviews and roundtables with sustainability professionals, including a roundtable held during Climate Week NYC in September 2025, comprising 34 professionals from major corporations across multiple geographies and sectors.

ESG rating providers included in the survey are those considered dominant players in the field, reviewed and approved by ERM ratings experts and an ESG Ratings Working Group. The 2025 survey expanded its scope to include two additional providers — Sedex and ESG Book — not featured in prior editions.

Key findings and themes from the 2025 edition

Investor demand remains the primary driver of corporate engagement with ESG rating agencies, cited by 46% of respondents as the top reason for engagement, though this represents a decline from 57% in 2023. Customer demand has grown considerably in importance, with 23% of respondents citing it as their top driver, up from 7% in 2023.

EcoVadis made the most notable rise in rankings, moving from seventh place in 2023 to first place on perceived usefulness in 2025, and from fifth to third on perceived quality. This reflects growing corporate interest in supply chain sustainability solutions. S&P Global ESG and CDP maintained leading positions, ranking first and second respectively on perceived quality.

Corporate trust in ESG ratings increased modestly, with the average trust score rising from 2.86 out of 5 in 2023 to 3.12 out of 5 in 2025. Companies are also becoming more selective in the number of raters they engage, with engagement across more than ten raters falling by more than half since 2023, as sustainability teams increasingly prioritise ratings most relevant to their stakeholders and regulatory requirements.

Looking ahead, 84% of companies indicate they plan to continue engaging with ESG ratings, and 77% of respondents want rating agencies to align their methodologies with leading mandatory and voluntary reporting standards. The most desired change is greater alignment with mandatory reporting standards such as the European Sustainability Reporting Standards (ESRS) and the ISSB framework.

Regional variation was evident, with APAC and EMEA respondents assigning higher scores for quality and usefulness than North American respondents. CDP and S&P Global ESG consistently ranked in the top two positions across all regions.

Relevance and uses for finance professionals

The Rate the Raters series is directly relevant to finance professionals involved in ESG investment analysis, sustainable finance, and corporate governance. It provides an independent, data-driven assessment of which ESG rating providers are considered most credible and useful by corporate issuers — information that can inform how investors interpret and weigh ESG ratings within their own analytical frameworks.

The series tracks the regulatory landscape affecting ESG ratings, including mandatory regulations such as the EU Regulation on ESG Rating Activities (in force from 2025, with most obligations applying from 2026), India’s SEBI requirements for ESG rating providers, and pending FCA regulation in the United Kingdom. Understanding these regulatory shifts is material for investors and asset managers relying on ESG data to meet their own compliance obligations.

The findings on corporate engagement patterns and shifting stakeholder priorities — particularly the rise of customer demand and supply chain-focused ratings — provide useful context for financial professionals assessing the sustainability credentials of portfolio companies and their supply chain exposures.

As part of the multi-year Rate the Raters initiative, a complementary investor survey is planned for publication in 2026, which will allow direct comparison of corporate and investor perspectives on ESG ratings quality, usefulness, and future relevance.