ABSTRACT
The first section provides the main definitions of ESG ratings and scoring and the greenwashing phenomenon. This chapter includes examples of ESG ratings and scorings – the main factors considered in estimating ESG risk. The differences between credit ratings and ESG ratings are emphasised, which are significant because the current ESG rating regulations are based on credit rating regulations. The impact of ESG measures on credit rating estimation is described. The book presents the primary ESG data providers and changes in the ESG rating market and analyses the stages of ESG rating estimation. At the end of the chapter, the implications of ESG ratings on the financial market are presented.
