Transparency in sustainability communication through ESG assessments and reporting
ESG Ratings & Reporting
The transparent assessment of sustainability criteria is a key factor for companies, investors and stakeholders. The tightening of reporting obligations under the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy and the influence of the rating in customer contracts and for access to capital or more favorable conditions play a major role. ESG ratings evaluate companies on the basis of sustainability criteria and show how well they comply with environmental, social and ethical standards. External rating agencies analyze company data and award scores or grades that serve as a guide for investors, customers and business partners. Well-known ESG rating agencies include S&P Global, MSCI ESG Ratings, Sustainalytics, ISS ESG, EcoVadis and CDP.
ESG Rating Organisations
An Overview
S&P Global ESG Score
The S&P Global Corporate Sustainability Assessment (CSA) is aimed at companies that want to establish a basis for their sustainability performance and gain an independent insight into their sustainability performance in comparison with other companies. Over 10,000 companies worldwide are assessed each year. The CSA focuses on criteria that are both industry-specific and financially material, and has done so since 1999. Companies that are included in selected S&P Dow Jones indices can participate in the CSA free of charge. Other companies can commission the assessment as a service.
MSCI ESG Ratings
The MSCI indices are a measure of stock market performance in a specific area. Like other indices, such as the S&P 500, it tracks the performance of the stocks included in the index. MSCI has indices for a variety of geographical sub-sectors as well as global indices for equity categories such as small-cap, large-cap and mid-cap. The indices are used as the basis for exchange-traded funds and the ETF tracks the equity holdings of the index. This allows investors in particular to benefit from the performance of the index.
Sustainalytics ESG Risk Ratings
Sustainalytics is a leading global provider of ESG and corporate governance ratings. Over the past 25 years, they have brought together leading ESG experts to provide personalized client service. Today, Sustainalytics supports hundreds of the world’s leading investors who incorporate ESG and corporate governance knowledge into their investment processes.
EcoVadis
EcoVadis is a globally recognized platform for evaluating the sustainability performance of companies. It evaluates companies in four main categories: Environment, Labor and Human Rights, Ethics and Sustainable Procurement. These assessments are based on a comprehensive analysis of policies, measures and measurable results, which are summarized in a scorecard. Companies receive a rating from 0 to 100 points and can be awarded medals (bronze, silver, gold, platinum) that represent their sustainability performance in comparison to other companies.
CDP (Carbon Disclosure Project)
CDP is an international non-profit organization specializing in the disclosure of environmental data. Founded in 2000, CDP aims to encourage companies, cities and governments to measure, manage and reduce their environmental impacts, particularly greenhouse gas emissions. CDP collects data from over 18,700 organizations worldwide and provides investors and other stakeholders with standardized information to make informed decisions.
ISS ESG Corporate Rating
ISS‘ ESG solutions enable investors to develop and integrate responsible investing policies and practices, engage in responsible investing issues and monitor portfolio company practices through screening solutions. In addition, ISS provides climate data, analytics and advisory services to help financial market participants understand, measure and act on climate-related risks across all asset classes. In addition, ESG solutions include ESG research and ratings for companies and countries, enabling clients to identify material social and environmental risks and opportunities.
GRESB (Global Real Estate Sustainability Benchmark)
GRESB is a leading assessment system for the sustainability performance of real estate portfolios and investments. Founded in 2009, GRESB provides standardized and validated ESG data for the real estate industry. The assessment is carried out in the categories of management, performance and development, whereby the performance of existing and development portfolios is evaluated. The results are expressed as a score between 0 and 100 points and enable companies to compare their sustainability performance with industry peers.
ESG Reportings
An Overview
CSRD (Corporate Sustainability Reporting Directive) & ESRS (European Sustainability Reporting Standards)
The CSRD is an EU directive that standardizes corporate sustainability reporting. It obliges a large number of companies to publish comprehensive sustainability information, integrate it into their management report and have it audited externally. Reporting is based on the principle of dual materiality, which means that companies must present both the impact of sustainability aspects on the company and the company’s impact on people and the environment. The ESRS provide concrete guidelines for the preparation of these reports as part of the CSRD. They aim to increase the transparency and comparability of sustainability information and cover various ESG aspects, including environmental, social and governance issues.
EU-Taxonomy
The EU Taxonomy is an EU regulation that defines uniform criteria for the classification of environmentally sustainable economic activities. Its purpose is to increase the transparency and comparability of sustainability information and to support investors in making sustainable investment decisions. Companies must state the proportion of their revenue, capital expenditure and operating expenditure associated with environmentally sustainable activities as defined by the EU taxonomy. The aim is to achieve climate neutrality in Europe by 2050 and to support the Green Deal
GRI (Global Reporting Initiative)
GRI is a non-profit organization that was founded in 1997 to support companies in sustainability reporting. GRI provides a comprehensive framework for reporting on economic, environmental and social aspects that is recognized worldwide. The GRI Standards include universal, sector-specific and thematic guidelines that help organizations to present their sustainability performance in a transparent and comparable manner.
UNGC (United Nations Global Compact) and CoP (Communication on Progress)
The CoP is an annual report that companies participating in the UN Global Compact must publish. The CoP serves as an accountability mechanism and demonstrates progress in implementing the ten principles of the Global Compact and the SDGs. The report consists of two main elements: a CEO statement of ongoing support for the Global Compact and a questionnaire outlining the company’s actions and progress in the areas of governance, human rights, labor, environment and anti-corruption.
SASB (Sustainability Accounting Standards Board)
SASB is a not-for-profit organization founded in 2011 to develop industry-specific standards for sustainability reporting. SASB focuses on the disclosure of financially relevant sustainability information that may have an impact on the financial position or operational performance of companies. SASB standards help companies identify, manage and report sustainability-related risks and opportunities, which supports investors in making informed decisions. In 2022, SASB was integrated into the International Sustainability Standards Board (ISSB), which now further develops and utilizes the SASB standards.
IFRS – International Sustainability Standards Board (ISSB)
The ISSB is an independent body within the IFRS Foundation that specializes in the development of global standards for sustainability reporting. In June 2023, the ISSB published the first two standards: IFRS S1 and IFRS S2. These standards aim to create a uniform global basis for sustainability reporting and promote the consistency and quality of disclosures. They are applicable for financial years beginning on or after January 1, 2024 and can be applied voluntarily, but are not mandatory in Europe unless they are adopted into national law.
Services
Our services at a glance
The requirements for ESG ratings and reporting are becoming increasingly complex – we support you in maintaining an overview and making targeted improvements. Our experts help you to efficiently record and analyze your ESG data and prepare it in accordance with the relevant standards (e.g. CSRD, EU Taxonomy, GRESB). We also support you in optimizing your ESG ratings (e.g. CDP, EcoVadis) by improving your ESG data management and deriving targeted measures to increase your sustainability performance and transparency. Whether you need an initial assessment, strategic implementation or continuous improvement – we offer tailor-made solutions.
Our team takes care of the preparation and critical monitoring of the rating and reporting processes according to your company’s ambition level and available resources. We will reduce the complexity of the requirements for you and provide you with individual and personal support.
Your Advantages
Why you should turn to DFGE for ESG ratings and reports
- We are familiar with the methodology and evaluation of the various ratings and organizations and are official partners of CDP, EcoVadis and Friends of EFRAG
- Holistic customer support through our sustainability intelligence approach
- Focus on SMEs: For over 25 years, we have been supporting SMEs in the implementation of sustainability projects and reporting requirements in accordance with internationally recognized standards such as GRI or UNGC.
- We see ourselves as coaches, consultants and service providers – to minimize resources and effort on your side
- We are not an advertising agency that makes your data prettier. Our roots are in research and that’s how we still work today.
