ANNOUNCEMENTS
Environment, Social and Governance (ESG) Rating has become more relevant than ever as both public and private entities have become vulnerable to the potential E, S and G risks. Its dominant role in the investment process has led the investors to question the rationale behind those numbers in the ESG report. In this context, the objective of this paper is, to analyse the methodologies of different rating agencies and to understand the importance of ESG disclosure for both public and private sectors. The research is based on the in-depth analysis of the assessment process followed by two different rating agencies, MSCI and ERM. The findings show how different companies cater for the needs of an investor and lead to a better investment decision in the long run.
Keywords: ESG Rating, Private Equity ESG Rating, ESG Rating Methodology, ESG Disclosure for private companies, MSCI’s ESG methodology.
