Norway was the third-highest ranking country worldwide by overall Environmental, Social, and Governance (ESG) score. Finland ranked second overall with a score of **. Denmark was the highest-ranking country worldwide, scoring an ESG rating of ****.

A large portion of countries within the Asia-Pacific region received an Environmental, Social, and Governance (ESG) score below **, leaving **** of the region's countries with an "E" grade. There were four nations that achieved an "A" grade, having scored ** ESG points or over. Australia was the ************** ranking country overall with a score of **. New Zealand was the *** ranking country in the Asia-Pacific, having achieved ****.

Belarus received an overall Environmental, Social, and Governance (ESG) score of **. This was almost ** points below the ******-lowest ranking country, Ukraine. Both Ukraine and Albania received a general "C" grade. Moldova began the "*" grades with an overall ESG score of ****. Those scoring ** and above were awarded an "A" grade, with Denmark having scored the highest overall score, reaching ****.

Nicaragua received an overall Environmental, Social, and Governance (ESG) score of ****. This was more than ** points below the second-lowest ranking country, Mexico, which received a "*" grading having achieved an ESG score of under ** points. Canada was the best performing country across the Americas, having achieved a score of ****.

ISS ESG’s Country Rating solution provides a highly relevant and material assessment of a country’s ESG performance, allowing investors to draw well-informed conclusions about the long-term solvency of government bond issuers. The rating comprises more than 100 quantitative and qualitative criteria and follows a profound methodology, reflecting global best practices as well as normative considerations.

The sustainability performance of countries is analyzed via two dimensions and six categories:

Social & Governance Rating 1. Political System/Governance 2. Human Rights/Fundamental Freedoms 3. Social Conditions

Environmental Rating 4. Natural Resources 5. Climate Change/Energy 6. Production/Consumption

A wide range of ESG topics are assessed in the ISS ESG Country Rating including both qualitative and quantitative criteria. For instance, the safeguarding of fundamental freedoms by a country’s government is mostly assessed in qualitative terms, while a country’s consumption of resources is quantified. The rating also includes a comprehensive analysis of relevant controversies, allowing investors to consider countries' performance and actions in areas especially critical to them.

The rating dimensions environment, social and governance are comprised of specifically defined topics, which in turn are further split into several criteria and sub-criteria. This allows for an individual assessment of each country’s performance in a very detailed way and to take into account the various individual interdependencies and multidimensional nature of the criteria.

The overall evaluation is based on a twelve–point grading system from A+ (excellent performance) to D- (poor performance). Countries are categorized as ISS ESG “Prime” if they achieve or exceed the minimum sustainability performance requirements (Prime threshold: B-) defined for the ESG Country Rating.

Coverage includes approximately 100% coverage of global sovereign debt issued and more than 120 countries.

ISS ESG’s Country Ratings are based on a variety of trustworthy sources, including:

• Supranational organizations such as the UN Development Programme, World Health Organization, and International Labor Organization • Public authorities such as the US State Department and German Foreign Affairs Department • Non-governmental organizations such as Amnesty International, International Trade Union Confederation, Transparency International, and Stockholm International Peace Research Institute

Direct contact via telephone or e-mail is conducted only occasionally if data is ambiguous or if more background information is necessary.

Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms.

South Africa received an overall Environmental, Social, and Governance (ESG) score of ****. This was **** point above Botswana, which ranked in third place overall. Namibia was the country with the highest overall ESG score across Africa and the Middle East. Qatar was the best performing country in the Middle East, having an overall ESG score of **** earning the nation a "C" grade.

As ESG investing has gone mainstream in the public equity space, the spotlight has turned to fixed income investments and sovereign bonds in particular. Investors increasingly recognize that ESG factors, such as corruption, climate protection, and human rights, could impact the long-term solvency of government bond issuers.

ISS ESG’s Country Controversy Assessment enables investors to assess a country’s exposure to various controversies, including alignment with international norms and conventions, to effectively manage potential ESG risks and opportunities. The assessment covers various ESG factors across the following themes:

• Authoritarian Regime • Biodiversity • Child Labour • Climate Protection • Coal Power • Corruption • Death Penalty • Discrimination • Euthanasia • Freedom of Association • Freedom of Speech & Press • Global Peace Index • Human Rights • Labour Rights • Military Budget • Money Laundering • Nuclear Power • Nuclear Weapons • Whaling

Coverage for the Country Controversy Assessment includes more than 800 sovereign issuers:

• Approximately 100% coverage of global sovereign debt issued • More than 120 countries as well as Hong Kong and the European Union • All member countries of the European Union and the OECD

Analysts gather the controversy-related information from credible and acknowledged external sources, such as indices and blacklists, and the ISS ESG Country Rating to deliver high-quality, relevant and actionable data.

Examples of sources:

• Amnesty International • Financial Action Task Force • Germanwatch • Stockholm International Peace Research Institute

Data is used by a broad range of institutional investors, asset managers, asset owners, fund managers, banks, government institutions, universities and research firms.

Comprehensive framework to assess sustainable competitiveness across 180+ countries

ESG Rating Market Outlook

According to our latest research, the global ESG Rating market size reached USD 1.85 billion in 2024, reflecting a robust demand for environmental, social, and governance (ESG) evaluation services across industries. The market is experiencing a dynamic expansion, with a CAGR of 13.7% projected from 2025 to 2033. At this growth rate, the ESG Rating market is forecasted to reach USD 5.58 billion by 2033. This growth is primarily driven by increasing regulatory mandates, investor pressure for transparency, and the strategic integration of ESG factors into corporate decision-making processes.

One of the primary growth factors propelling the ESG Rating market is the escalating demand from institutional investors for transparent, data-driven insights into corporate sustainability practices. As global awareness of climate change and social responsibility intensifies, investors are increasingly integrating ESG ratings into their portfolio management and risk assessment frameworks. This trend is further accentuated by the proliferation of sustainable investment funds and the growing adoption of ESG principles by pension funds, sovereign wealth funds, and asset managers. The need for credible, standardized ESG data has compelled organizations to seek advanced ESG rating solutions, thereby fueling market expansion.

Regulatory developments across major economies are another significant driver shaping the ESG Rating market. Governments and regulatory bodies in regions such as the European Union, North America, and Asia Pacific are introducing stringent disclosure requirements, compelling companies to report on their ESG performance. The European UnionÂ’s Sustainable Finance Disclosure Regulation (SFDR) and the U.S. Securities and Exchange CommissionÂ’s (SEC) proposed ESG disclosure rules are notable examples. These regulations are not only increasing the compliance burden on organizations but are also creating a fertile environment for ESG rating providers to offer specialized software and services that facilitate seamless compliance and reporting.

Technological advancements and the digital transformation of risk management and compliance functions have also played a pivotal role in the growth of the ESG Rating market. The adoption of artificial intelligence, big data analytics, and cloud-based platforms has enabled ESG rating providers to deliver more accurate, real-time, and comprehensive ESG assessments. These technologies enhance the ability of organizations to benchmark their ESG performance, identify gaps, and implement corrective measures. Furthermore, the integration of ESG ratings into enterprise resource planning (ERP) and investment analysis platforms has broadened the utility of ESG data, making it indispensable for strategic decision-making at all organizational levels.

Regionally, North America and Europe currently dominate the ESG Rating market, accounting for the largest share of global revenues in 2024. North America, led by the United States, benefits from a mature financial ecosystem, proactive regulatory environment, and high investor awareness regarding ESG issues. Europe, on the other hand, is at the forefront of regulatory innovation and sustainable finance, with the EUÂ’s taxonomy and disclosure regulations setting global benchmarks. The Asia Pacific region is emerging as a high-growth market, driven by rapid economic development, increasing foreign investment, and evolving ESG frameworks in countries such as China, Japan, and Australia. Latin America and the Middle East & Africa are also witnessing steady growth, albeit from a smaller base, as multinational corporations and local enterprises recognize the strategic value of ESG integration.

As the ESG Rating market continues to evolve, ESG Collateral Screening is becoming an essential tool for investors and financial institutions. This process involves evaluating the environmental, social, and governance aspects of collateral assets to ensure they meet specific sustainability criteria. By incorporating ESG Collateral Screening into their risk management strategies, organizations can better assess the long-term viability and ethical implications of their investments. This approach not only enhances transparency and accountability but also aligns with the growing demand for sustainable finance solutions. As regulatory framework

In 2024, the environmental, social, and governance (ESG) scores of the largest banks worldwide varied markedly across different score providers. **************, the largest bank globally in terms of market capitalization, showed a wide range of scores: when standardized to a score out of 100, the highest score was given by MSCI, at ****, and the lowest by S&P Global (previously RobecoSAM), at **, while the score from Sustainalytics had a value of **. With only one green bond issued since December 2020, JPMorgan Chase ranked tenth among the leading banks worldwide by value of green bond issuance. Growing commitment to sustainability Banks worldwide are increasingly recognizing the importance of sustainability in their operations. The Net-Zero Banking Alliance, launched in 2021, has grown to include *** members as of September 2024, with the majority located in Europe. This initiative demonstrates the banking sector's commitment to aligning their operations with the goal of achieving net-zero emissions by 2050. Members are required to set interim targets and provide annual progress reports, indicating a shift towards more transparent and accountable sustainability practices in the industry. ESG scores and their growing role in investment decisions ESG scores measure a company's exposure to long-term environmental, social, and governance risks. These non-financial factors are a growing concern for investors worldwide, and many of them now integrate ESG data in their investment decision-making to have a positive impact on the environment and society. As a result, the assets of ESG funds worldwide increased considerably in recent years, reaching a value of *** billion U.S. dollars in 2023. ESG factors cover a broad spectrum of sustainability criteria, but environmental concerns are still the main drivers of ESG investing. Despite rising pressure on companies to decrease their impact on the environment, the carbon dioxide emissions of the largest banks worldwide are still far from sustainable.

In 2023, a significant share of European investors agreed that Environmental, Social, and Governance (ESG) ratings provide clarity and information into company practices. The proportion of respondents who agreed was highest in Italy, at ** percent, followed by Germany, where ** percent of investors expressed trust in ESG ratings to provide clarity.

ESG Ratings Provider Liability Market Outlook

According to our latest research, the Global ESG Ratings Provider Liability market size was valued at $1.7 billion in 2024 and is projected to reach $6.4 billion by 2033, expanding at a CAGR of 15.2% during 2024–2033. One of the primary factors driving the growth of the ESG Ratings Provider Liability market globally is the increasing integration of Environmental, Social, and Governance (ESG) criteria into mainstream investment decisions, which has elevated the demand for credible, transparent, and accountable ESG ratings and analytics. As regulatory bodies intensify their scrutiny and investors demand greater transparency, ESG ratings providers are facing heightened expectations and, consequently, potential liability, fueling the need for robust risk management, assurance, and consulting services in this sector.

Regional Outlook

North America currently holds the largest market share in the ESG Ratings Provider Liability market, accounting for nearly 38% of global revenue in 2024. This dominance is underpinned by mature financial markets, a high density of institutional investors, and a well-established regulatory framework that emphasizes ESG disclosures and accountability. The United States, in particular, has witnessed rapid adoption of ESG ratings and analytics, driven by both voluntary initiatives and emerging regulatory requirements from entities such as the SEC. The region boasts a robust ecosystem of independent providers, credit rating agencies, and financial institutions offering sophisticated ESG services. Additionally, high-profile litigation and enforcement actions have heightened awareness around liability, prompting providers to invest in advanced data analytics, assurance, and consulting services to mitigate risks and enhance credibility.

Europe is the fastest-growing region in the ESG Ratings Provider Liability market, projected to expand at a CAGR of 17.6% from 2024 to 2033. This acceleration is largely attributable to the European Union’s ambitious Sustainable Finance Disclosure Regulation (SFDR) and the Corporate Sustainability Reporting Directive (CSRD), which have significantly increased compliance obligations for corporates and financial institutions. The European market is distinguished by proactive policy reforms, a strong focus on climate risk, and the presence of numerous global ESG ratings providers. The influx of sustainable investment capital, coupled with a growing culture of corporate accountability, has spurred demand for ESG assurance and consulting services. Furthermore, European asset managers and institutional investors are increasingly integrating ESG ratings into their risk management and investment decision-making processes, further fueling market growth.

Emerging economies in Asia Pacific and Latin America are experiencing a nascent yet rapidly evolving ESG Ratings Provider Liability landscape. In Asia Pacific, countries such as Japan, Australia, and Singapore are leading the charge, supported by government incentives and growing investor demand for sustainable finance products. However, adoption across the broader region remains uneven due to varying regulatory maturity and limited ESG data infrastructure. Latin America and the Middle East & Africa face similar challenges, including fragmented markets, regulatory uncertainty, and limited awareness among corporates and investors. Nonetheless, the increasing participation of multinational corporations and the gradual alignment of local policies with global ESG standards are expected to unlock significant growth opportunities in these regions over the forecast period.

Report Scope

Index Time Series for iShares MSCI World Value Factor ESG UCITS ETF USD (Acc). The frequency of the observation is daily. Moving average series are also typically included. NA

Index Time Series for iShares MSCI World Information Technology Sector ESG UCITS ETF USD Inc. The frequency of the observation is daily. Moving average series are also typically included. NA

The aim this study is to analyze the impact of environmental, social, and governance (ESG) measures on energy sector credit ratings. The main hypothesis is as follows: The ESG measures have had a significant impact on energy sector credit ratings during the COVID-19 crisis. The analysis has been conducted by using long-term issuer credit ratings presented by the main credit rating agencies. To verify the hypothesis, quarterly data from financial statements, macroeconomic data, and ESG measures for all companies listed on the stock exchanges from all over the world for the 2000–2021 period were collected. The sector was divided into sub-samples according to the type of sector and the moment of the COVID-19 crisis. It was noticed that a stronger reaction of credit ratings during the COVID-19 crisis on ESG factors, than that before it, was also observed, and confirms the increasing role of ESG measures in the financial market. On the other hand, credit rating agencies take into consideration ESG factors during the first estimation. Later, the mentioned variables lose their importance. This is based on a few reasons. It is still a small sample of entities that publish non-financial statements connected with ESG. Some countries have yet to implement regulations associated with climate risk. The significance of electricity power consumption and CO2 emissions confirms the significance of the mentioned direct or indirect impact of ESG factors. Credit rating agencies are not willing to change credit ratings because usually companies from the energy sector, especially from coal and oil and gas subsectors, are large entities. They sometimes receive financial support from governments. Governments are also stakeholders that create a lower risk of default. In less developed countries, coal is one of the main energy sources, and costs connected with alternative, renewable energy are more expensive. The prepared research also suggests that particular ESG measures have varying significance on credit ratings. Therefore, it can help to analyze and build models by investors. It will not be without significance for estimating the default risk and the cost of the capital. In most cases, the most significant measure is the E factor.

Index Time Series for iShares MSCI World ESG Enhanced UCITS ETF. The frequency of the observation is daily. Moving average series are also typically included. NA

As of 2023, the majority of small and medium-sized enterprises (SMEs) surveyed viewed environmental, social, and corporate governance (ESG) as a top priority. Indonesia led the way, with almost all of the firms surveyed in this country stating ESG was considered to be a leading business priority. India ranked ****** with ** percent of businesses surveyed considering ESG to be a top-ranking priority.

Index Time Series for Xtrackers MSCI AC World ESG Screened UCITS ETF 1C EUR. The frequency of the observation is daily. Moving average series are also typically included. NA

Access only for peer review. The dataset will be opened when the paper is accepted in a journal.

This is the dataset used in the research conducted as part of the study titled "BRIDGING ESG RATINGS AND MEDIA ANALYSIS: A DUAL AI APPROACH TO CORPORATE ETHICS", which collects 44,315 news items related to business ethics behaviours of 1,474 European companies that have information on the ESG Controversies (ESGC) index of Thomson Reuters Eikon for at least 4 years of the time horizon from 2017 to 2023.

The following table shows the variables contained in the dataset for each of the news items extracted from Google News.

Data

Type

Source

Date

Date posting

Google News API

Title

Headline text

Google News API

Snippet

Caption text

Google News API

Source

Newspaper, website, blog

Google News API

Link

URL of the news item

Google News API

Company Name

Name of the company

Thomson Reuters Eikon

ESGC score

From 0 to 100 points

Thomson Reuters Eikon

ESGC rank

A, B, C or D ranks

Thomson Reuters Eikon

Country

Name of European countries

Thomson Reuters Eikon

Employees

Number of employees

Thomson Reuters Eikon

Turnover

Total revenue in the last year

Thomson Reuters Eikon

Industry sector

Name of the industrial sector in which the company operates

Thomson Reuters Eikon