Last week, ISS ESG announced it is requesting market feedback on its corporate rating methodology. This is the first time ISS ESG has sought market feedback “as it enhances and aligns its methodology in a rapidly evolving regulatory landscape.” Feedback is being requested through an on-line survey instrument that covers a range of issues relevant to the rating methodology and its use. According to the announcement:
“The survey starts by eliciting feedback regarding ISS ESG’s global approach and foundation of drawing on international normative frameworks, voluntary disclosure standards, and regulatory regimes informing the methodology. It then moves on to seek feedback on materiality considerations, different use-cases for the ISS ESG Corporate Rating, and the underlying scores and data which make-up the rating.”
So much controversy is swirling around ESG ratings (this is but one hullabaloo), especially since the vast majority of them are proprietary black boxes. This seems like a relatively unique opportunity to provide feedback to a major rating organization. If ISS ESG ratings are important to your company, you should consider taking time to complete the survey, which can be accessed here and will close on October 20, 2023, at 5pm ET.
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