Overview

Rate the Raters 2026: Beyond the score is the sixth edition of a multi-year benchmark series produced by the ERM Sustainability Institute. This report specifically examines investor perspectives on the ESG ratings landscape, providing an in-depth look at how these ratings are perceived, valued, and utilised within the investment community. It serves as a companion piece to the corporate edition of the series, allowing for a comparison between how companies and investors view the same ratings organisations. The report covers a wide range of topics, including the perceived quality and usefulness of major ESG raters, the integration of ESG data into investment processes, and the future role of technology, specifically artificial intelligence, in the sector.

Purpose

This benchmark series exists to provide transparency and clarity in a rapidly evolving and often opaque ESG ratings market. It is designed to inform the strategic decisions of three primary stakeholder groups. For investors, it provides a basis for evaluating the credibility and utility of the data products they subscribe to, helping them identify which providers offer the most material insights for their investment analysis. For ESG ratings providers, the report offers direct feedback on where their products are meeting or failing to meet investor expectations, highlighting areas for methodological improvement and better service delivery. For companies, it identifies which ratings are most influential among investors, allowing them to focus their disclosure and engagement efforts on the providers that matter most to their capital providers.

Methodology

The analysis is based on a survey of 53 investment professionals undertaken between February and July 2026. These participants represent a diverse range of organisations, including asset managers, asset owners, and private equity firms, collectively managing over $23.5 trillion in assets. The survey data is supplemented by 10 additional interviews with a subset of the surveyed investors and other industry leaders to provide qualitative context. The assessment framework uses a five-point rating scale to measure factors such as perceived quality, usefulness, and trust. The research also considers external factors, such as surging sustainable finance regulation and advances in artificial intelligence, to understand how the broader context is reshaping how ESG data is collected, processed, and validated.

Use for finance professionals

Finance professionals can utilise this report to refine their approach to sustainability data and investment decision-making. By understanding which ESG ratings are ranked highest for quality and usefulness by their peers, professionals can make more informed choices regarding data procurement and vendor selection. The report highlights a significant shift from relying on top-level ESG scores toward using underlying data for proprietary analysis, which can help firms better structure their internal research teams and workflows. Furthermore, the findings on the role of artificial intelligence provide a roadmap for how technology can be used to independently verify data and monitor controversies more efficiently. The recommendations provided in the report offer practical steps for reviewing data subscriptions for overlap, communicating evolving needs to providers, and enhancing engagement with rated companies to improve data accuracy.