Currently, ESG rating providers often greatly differ in both their methodology and approach. A variety of different sources of data, methodologies and formulae are utilized by providers when determining their ratings. This can lead to divergent rankings given to the same company by different ESG rating providers. Regulators in the U.S., UK, and EU recognize the issues caused by the current inconsistencies and are starting to develop rules in this area. Read our most recent Clients & Friends Memo here.