ESG Rating Service Market to Grow with a CAGR of 5.25% through 2030

The ESG Rating Service Market is expanding due to increasing demand for sustainability insights, regulatory requirements for environmental, social, and governance practices, and growing investor interest in responsible and ethical investing.

According to TechSci Research report, “ESG Rating Service Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030F”, The global ESG Rating Service Market was valued at USD 12.32 Billion in 2024 and is expected to reach USD 16.69 Billion by 2030 with a CAGR of 5.25% during the forecast period. The global ESG Rating Service Market is experiencing significant growth as environmental, social, and governance (ESG) factors become increasingly central to investment decisions, corporate strategies, and public policy. ESG ratings are used by investors, businesses, and stakeholders to assess a company’s performance in these three critical areas. As the world grapples with climate change, social justice issues, and the demand for more transparent corporate governance, ESG ratings have emerged as a valuable tool to measure and compare companies' sustainability efforts. The increasing recognition of the financial materiality of ESG factors has spurred demand for ESG ratings, creating a dynamic and rapidly evolving market.

One of the key drivers of growth in the ESG rating service market is the heightened awareness of sustainability and corporate responsibility among investors and consumers. Investors are no longer solely focused on financial returns but are also prioritizing environmental impact, social responsibility, and governance practices. As a result, they are increasingly turning to ESG ratings to help them make informed investment decisions. Institutional investors, including pension funds, insurance companies, and mutual funds, are incorporating ESG factors into their investment strategies, pushing companies to adopt better ESG practices. The rising importance of sustainability has further increased the demand for ESG ratings to ensure transparency and accountability in the companies they invest in.

Another important factor contributing to the growth of the ESG rating service market is the growing regulatory pressure and expectations surrounding ESG disclosures. Governments and regulatory bodies across the world are imposing stricter requirements for companies to disclose their ESG practices and performance. For example, in the European Union, the introduction of the Corporate Sustainability Reporting Directive (CSRD) mandates that large companies disclose detailed information on sustainability, social responsibility, and governance practices. Similarly, the Securities and Exchange Commission (SEC) in the United States is actively working on strengthening ESG disclosure requirements for public companies. These regulatory efforts are fueling the demand for reliable and independent ESG ratings to help companies comply with new regulations and demonstrate their commitment to sustainable practices.

As the ESG rating service market expands, there is a growing need for more standardized and accurate ESG ratings. In the absence of consistent and widely accepted ESG rating methodologies, the market has seen the emergence of numerous ESG rating agencies, each with its own criteria and evaluation process. This lack of standardization can make it difficult for investors and companies to compare ratings and accurately assess a company’s performance in the ESG space. To address this issue, there is a push for greater transparency in ESG rating methodologies and a more consistent approach to assessing ESG factors across different sectors and regions. The development of standardized ESG rating frameworks and the integration of artificial intelligence (AI) and machine learning into ESG data analysis are expected to streamline and enhance the accuracy of ratings in the coming years.

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The global ESG Rating Service Market is segmented into service type, application and regions. 

Based on service type, ESG Reporting and Disclosure is the fastest-growing segment in the ESG Rating Service Market due to increasing regulatory requirements and rising investor demand for transparency. Governments worldwide are implementing stricter regulations, requiring businesses to disclose detailed ESG data, making reporting and disclosure essential for compliance. Investors are also prioritizing sustainability, pushing companies to provide clear and accessible ESG information. As more companies recognize the importance of transparent ESG reporting to attract investment and improve their public image, the demand for professional ESG reporting and disclosure services continues to grow, driving this segment's rapid expansion.

Based on region, Asia Pacific region is the fastest-growing market in the ESG Rating Service Market due to increasing awareness of sustainability, growing regulatory pressures, and rising demand from investors for responsible business practices. As countries like Japan, China, and India focus on integrating ESG factors into their corporate governance, there is a surge in demand for ESG ratings to ensure compliance with emerging regulations. Additionally, as both global and regional investors prioritize sustainability, businesses in the Asia Pacific are increasingly seeking ESG ratings to improve transparency and attract investment, driving rapid growth in the market.

Major companies operating in global ESG Rating Service Market are:

• Sustainalytics
• LSEG Data and Analytics
• MSCI Inc.
• Iris Carbon
• S&P Global
• ISS Governance
• Bloomberg
• Arabseque
• PricewaterhouseCoopers (PwC)
• Carbon Disclosure Project (CDP)

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“The global ESG Rating Service Market has experienced significant growth, as stakeholders increasingly recognize the value of assessing ESG factors in driving long-term business success. As ESG performance becomes more tightly integrated into corporate strategy, financial performance, and risk management, the demand for accurate, reliable, and transparent ESG ratings will continue to rise. Additionally, advancements in technology, such as AI and big data analytics, will further enhance the accuracy and efficiency of ESG ratings, making them more accessible and actionable for investors, businesses, and regulators alike. Ultimately, the global ESG rating service market is set to play a crucial role in shaping the future of sustainable business practices and responsible investing. “Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“ESG Rating Service Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service Type (ESG Assessment and Ratings, ESG Data Verification, ESG Reporting and Disclosure, ESG Strategy Consulting, Assurance and Compliance Services, Other Customized ESG Solutions), By Application (Investment and Asset Management, Corporate Governance and Risk Management, Sustainability and Supply Chain Management, Climate Change and Resource Management, Other Sector-Specific Application), By Region, By Competition, 2020-2030F”, has evaluated the future growth potential of global ESG Rating Service Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global ESG Rating Service Market.

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