ESG Ratings: Measuring Corporate Responsibility and Driving Sustainable Growth
In today’s global marketplace, investors, regulators, and consumers are no longer content with traditional measures of business success like revenue or market share alone. They want to know how companies manage their Environmental, Social, and Governance (ESG) responsibilities. This growing demand for transparency and accountability has elevated the importance of ESG ratings , which have become a vital benchmark for evaluating corporate sustainability and ethical performance. This article explores what ESG ratings are, why they matter, how they are calculated, and how companies can leverage them to drive sustainable growth, manage risk, and strengthen stakeholder trust. What Are ESG Ratings? ESG ratings assess a company’s performance and resilience concerning environmental stewardship, social responsibility, and governance practices. Unlike traditional financial ratings, which primarily evaluate credit risk and profitability, ESG ratings focus on how well a business aligns with...