FirstLook:SurveyHighlights*Thisreportisbasedonanalysisofsurveyresponsesfromabroadrangeofcorporatesustainabilityprofessionalsandinvestors;surveydataaresupplementedbyin-depthinterviewsandsecondaryresearch.ThefindingsrevealanongoingevolutionintheESGratingsspace,withthelandscapebecomingmorecomplexatthesametimeasratingsbecomemoreimportanttoinvestorsandcorporations.ButmanyofthepainpointspastRatetheRatersresearchrevealedremainthesame.ESGratingsanddataareessentialtothesustainablefinanceecosystemandtheiruseisincreasing,butESGratingsprovidersstillfallshortofmeetingallstakeholders’needs.PleaseclickovertothefullRatetheRaters2023foranalysisandcontext.CDP,S&PGlobalESG,ISS-ESG,andSustainalyticsarerankedthehighestbybothinvestorsandcorporaterespondents.�InvestorsandCorporatesmostlyagreeonthebestESGratingproviders:CDPandS&PGlobalESGarebothatthetopofthelist.�CDPearnsthehighestposition,asitdidduringpreviousRatetheRaterssurveycycles.InvestorsareincreasinglyrequiredtointegrateESGratingsanddataintoinvestmentstrategies.�In2018/19,12percentofinvestorrespondentsrankedrequirementstointegrateESGratingsanddataintotheirinvestmentpracticesamongtheirtopthreepriorityreasonsforusingESGratingproviders.�In2022,43percentofrespondentsrankedrequirementstointegrateESGratingsanddataintotheirinvestmentpracticesamongtheirtopthreereasonsforusingESGratingproviders.*104corporateand33investorsweresurveyedbetweenSeptemberandNovemberof2022.ForfullmethodologyansurveyquestionsseeAppendixI.FactsheetRatetheRaters2023Page1of4March2023BothInvestorsandCorporatesHaveOnlyModerateTrustinESGRatingsProviders.�WhenaskedtoratetheirlevelofoveralltrustinESGratingsproviderstoaccuratelyjudgecorporatesustainabilityperformanceonascaleof1to5*,52percentofcorporatesand59percentofinvestorsrespondedwitha“3,”indicatingmoderatetrust.�InvestorrespondentsratedtheirlevelofoveralltrustinESGratingsprovidersas3.31outof5onaverage.�CorporaterespondentsratedtheirlevelofoveralltrustinESGratingsprovidersas2.9outof5onaverage.ESGratersthatrequireactiveparticipationfromcorporationsarerankedhigherthanothers.�CorporaterespondentsrankedactiveratingprovidersCDPandS&PGlobalESGfirstandsecond,respectively,inaveragequalityandusefulness.�Activeproviders’averagescorewasapproximately0.5pointshigherinqualityandusefulness(3.71and3.56,respectively)comparedtopassiveratings(3.14and3.06,respectively).CorporationsrecognizebothbenefitandcostofengagementwithESGraters.�Over50percentofsurveyedcompaniesengagetosomedegreewithatleastsixratingsproviders,butintervieweesindicatedthattheyareprioritizingengagementandrespondingtofewerprovidersoverall.InvestordemanddrivescorporateengagementwithESGraters.�57percentofcorporaterespondentslistedinvestordemandastheirtopmotivation.�82percentofcorporaterespondentslistedinvestordemandamongtheirtopthreereasonsforengagingwithESGraters.*ThesurveyaskedallrespondentstoindicatetheiroveralltrustinESGratingsprovidersonascaleof1to5,where1is“verylow,”3is“moderate,”and5is“veryhigh.”Forfullmethodologyandanalyticalapproach,seeAppendix1.Page2of4RatetheRaters2023FactsheetMarch2023InvestorsuseESGratingproductsmorefrequentlythanwhenwelastsurveyedthem.�Nearlyhalf(47percent)ofallinvestorssurveyeduseESGratingsproductsandservicesmultipletimesperweek,comparedto35percentin2018/19.�Overtwo-thirds(69percent)ofinvestorsuseESGratingsproductsandservic...