Corporate engagement with sustainability ratings remains strong, survey finds

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illuminem summarises for you the essential news of the day. Read the full piece on Sustainable Views or enjoy below:

🗞️ Driving the news: Corporate engagement with ESG and sustainability ratings remains strong, according to a new survey by ERM’s Sustainability Institute
• A majority of companies say they will continue engaging with ratings providers, viewing them as an important part of their sustainability strategy

🔭 The context: Despite political pushback and regulatory complexity, companies still rely on ESG ratings to benchmark performance and communicate with investors
• ERM warns that closer alignment between sustainability ratings and evolving disclosure rules is essential to keep ratings relevant and credible
• Firms increasingly use ratings to guide internal decision-making, not just external reporting

🌍 Why it matters for the planet: ESG ratings influence how capital is allocated toward environmentally responsible companies
• Strong engagement helps channel investment toward lower-carbon operations, renewable energy, and improved environmental risk management
• Better alignment with disclosure standards can improve transparency on emissions, biodiversity impacts, and climate resilience

⏭️ What’s next: Ratings providers are expected to refine methodologies to better match regulatory frameworks and corporate disclosures
• Companies will likely push for clearer, more consistent metrics that link ESG scores to real-world environmental outcomes

💬 One quote: Sustainability ratings are considered an “important part” of corporate sustainability strategies, the survey found

📈 One stat: A majority of surveyed companies said they plan to continue engaging with ESG ratings despite shifting political and regulatory landscapes

See on illuminem's Data Hub™ the sustainability performance — carbon credit purchases, total emissions, and climate targets of thousands of companies

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