ESG Ratings Divergence: Problems and Solutions

Currently, there is growing interest in public assessments of environmental, social and management characteristics of companies and regions using the principles of the ESG concept. As a result, ESG agencies, having developed their unique methods, assign ESG ratings to companies (cities, regions). ESG agencies also assess economic entities, assigning them rankings, indices and other assessments in the form of information products. Currently, there is no official (generally accepted) definition of ESG ratings. As a result, such a problem as ESG rating divergence arises. This leads to differences in ratings (other information products) that are assigned by ESG agencies to the same companies (cities, regions). The purpose of the study is to determine problems that arise when forming ratings in the ESG concept and to propose ways to solve them. The authors conducted a comparative analysis of existing methods with the aim of classifying them and identifying those issues that lead to significant problems arising as a result of management decisions made based on ESG ratings. An analysis of the works of Russian and foreign researchers on the differences in ESG ratings made it possible to identify problems that affect the reduction in the objectivity of ESG ratings and outline ways to solve these problems. © 2025 Elsevier B.V., All rights reserved.