ESG Rating Firms Reeling as War Exposes Russian Blind Spot
- Regulators calling for rethink of how ESG ratings system works
- An estimated 600-plus standards, rankings, frameworks exist
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Vladimir Putin’s invasion of Ukraine is shining a spotlight on the largely unregulated business of ESG ratings, after investments billed as socially conscious bought into a regime that’s now being accused of war crimes.
On the eve of the invasion, about $9.5 billion in funds meeting European environmental, social or governance standards were in Russia, often on the basis of ratings from companies such as Sustainalytics and MSCI Inc.