What are ESG ratings?

Over two hundred rating agencies rate stocks and funds based on ESG criteria. Some of the best-known are Sustainalytics (owned by Morningstar), S&P Global, MSCI, FTSE, Bloomberg, Thomson Reuters, and Vigeo Eiris (owned by Moody’s). Most exchange-traded funds (ETFs) rely on ratings from MSCI, S&P Global, or FTSE.