ABSTRACT
This chapter explains the reasons for ESG rating inflation, including the type of ratings (solicited or unsolicited). It presents varied models of payment for ESG ratings and scorings and compares them with credit ratings. It also describes the impact of the payment model on ESG ratings. There are presented trends and expectations in the way of financing ESG measures. It analyses the internal and external ESG ratings. This phenomenon is typical of credit ratings. It describes future possible trends of using ESG measures by financial institutions according to the newest regulations and effects that they can bring. This section compares the ESG scorings and credit ratings inflation. A literature review of each of the mentioned phenomena is presented.
