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 & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.43 Billion
CAGR (2026-2031)	5.31%
Fastest Growing Segment	ESG Reporting and Disclosure
Largest Market	North America
Market Size (2031)	USD 16.95 Billion

Market Overview

The Global ESG Rating Service Market will grow from USD 12.43 Billion in 2025 to USD 16.95 Billion by 2031 at a 5.31% CAGR. The Global ESG Rating Service Market comprises specialized independent agencies and data providers that evaluate and score corporate entities based on their environmental, social, and governance resilience, enabling stakeholders to quantify non-financial risks. This sector is fundamentally driven by the rigorous enforcement of mandatory disclosure regulations, such as the EU’s Corporate Sustainability Reporting Directive, alongside an accelerating allocation of capital toward sustainable portfolios which necessitates robust verification. The scale of this driver is significant; according to the Global Sustainable Investment Alliance, in 2025, the value of fund assets reporting the use of responsible or sustainable investment approaches reached USD 16.7 trillion.

However, the industry encounters a substantial impediment regarding the lack of methodological standardization, which frequently results in divergent scores from different providers for the same entity. This low correlation creates confusion for asset managers attempting to integrate these metrics and raises concerns regarding the validity of sustainability claims. Consequently, the absence of a unified global framework for data comparability remains a critical challenge that could impede the market's reliability and long-term expansion.

Key Market Drivers

The surge in regulatory mandates represents the primary catalyst propelling the Global ESG Rating Service Market, as jurisdictions worldwide enforce stricter non-financial reporting standards. Frameworks like the EU’s Corporate Sustainability Reporting Directive compel companies to disclose granular sustainability data, necessitating third-party verification to ensure compliance and avoid penalties. This pressure transforms ESG ratings from a voluntary branding exercise into a critical operational requirement. The scale of this influence is evident in investor sentiment; according to PwC, December 2024, in the '2024 Global Investor Survey', 64% of investors identified government regulation as a significant driver of change for the businesses they invest in. Consequently, rating agencies are essential for translating complex compliance data into standardized scores that satisfy these emerging legal obligations.

Simultaneously, rising institutional demand for sustainable investment strategies creates an acute need for independent assessment services. Asset managers, facing greenwashing scrutiny, increasingly rely on external ratings to construct credible portfolios and validate sustainability claims to clients. This trend has fueled a massive accumulation of capital requiring rigorous screening. According to Morningstar, November 2024, in the 'Global Sustainable Fund Flows: Q3 2024 in Review' report, global ESG fund assets rose to USD 3.3 trillion in the third quarter of 2024. However, the reliable deployment of this capital hinges on the underlying data integrity provided by rating firms. This reliance is underscored by corporate challenges; according to Deloitte, September 2024, in the '2024 Sustainability Action Report', 57% of executives cited data quality as their biggest hurdle regarding ESG reporting. Thus, rating services act as the vital bridge between inconsistent corporate data and sophisticated investor needs.

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Key Market Challenges

The lack of methodological standardization stands as a critical barrier to the Global ESG Rating Service Market. Because independent agencies utilize proprietary and often opaque algorithms, the resulting scores for identical corporate entities frequently diverge significantly. This inconsistency undermines the fundamental utility of ESG ratings, as asset managers and investors are left unable to accurately compare the sustainability performance of companies. Consequently, the reliability of these metrics is called into question, leading to a pervasive erosion of trust among the very stakeholders expected to drive market demand.

This credibility gap directly restricts market expansion by fueling hesitation in capital allocation. When investors cannot verify sustainability claims with confidence, they become reluctant to commit funds to ESG-mandated portfolios, thereby dampening the demand for rating services. This impact is quantifiable; according to the 'Responsible Investment Association', in '2025', 'over half of respondents (54%) acknowledged that greenwashing concerns deter them from responsible investment'. Such reticence reduces the addressable market for rating providers, as the anticipated surge in sustainable capital inflows is throttled by skepticism regarding data validity.

Key Market Trends

The integration of artificial intelligence and alternative data is fundamentally altering the Global ESG Rating Service Market by addressing long-standing data quality issues. Providers are increasingly deploying natural language processing and satellite imagery to aggregate unstructured information from non-corporate sources, such as NGO reports and news feeds, thereby reducing reliance on potentially biased self-reported disclosures. This technological shift allows for the creation of more objective, real-time risk assessments that capture dynamic controversies often missed by traditional retrospective reporting. The industry's commitment to this transition is evident; according to Thomson Reuters, November 2024, in the '2024 State of Corporate ESG' report, 77% of survey respondents indicated they believe AI will have a high or transformational impact on their ESG-related work over the next five years.

Simultaneously, the market is witnessing a critical expansion through the incorporation of biodiversity and nature-related risks, moving beyond a singular focus on carbon emissions. Investors are demanding granular metrics on water usage, deforestation, and ecosystem integrity, driven by the understanding that nature loss poses systemic financial threats comparable to climate change. This broadening scope is being standardized by frameworks like the Taskforce on Nature-related Financial Disclosures (TNFD), which compel rating agencies to integrate complex biological data into their scoring models. The momentum behind this shift is substantial; according to the Taskforce on Nature-related Financial Disclosures, October 2024, in the 'Global Adoption of TNFD Framework' announcement, over 500 organizations representing USD 17.7 trillion in assets under management have committed to adopting these nature-related risk reporting standards.

Segmental Insights

The ESG Reporting and Disclosure segment is the fastest-growing category within the Global ESG Rating Service Market, driven primarily by tightening regulatory frameworks. Major institutions such as the European Commission and the U.S. Securities and Exchange Commission have introduced strict mandates requiring transparent non-financial data publication. This regulatory pressure compels corporations to adopt verified reporting mechanisms to ensure compliance and meet increasing investor demand for accuracy. Consequently, organizations are prioritizing professional disclosure services to standardize their sustainability metrics, mitigate reputational risks, and maintain access to global capital markets.

Regional Insights

North America dominates the global ESG rating service market due to the widespread adoption of sustainable investment strategies by institutional investors and asset managers. This leadership is supported by a robust financial infrastructure and the presence of major credit rating agencies expanding into sustainability analytics. Furthermore, regulatory developments by the United States Securities and Exchange Commission regarding climate-related disclosures have accelerated corporate demand for external ESG verification. Consequently, companies across the region are increasingly relying on professional rating services to ensure compliance and maintain competitive access to capital markets.

Recent Developments

• In July 2024, Moody's Corporation and MSCI Inc. entered into a strategic partnership to leverage their respective strengths in the ESG and sustainability market. Under this agreement, Moody's announced it would transition its customers to MSCI's sustainability content and discontinue its own standalone ESG scoring products. The collaboration allows the credit rating agency to utilize the partner's extensive sustainability data and models for its banking, insurance, and corporate solutions. Conversely, MSCI gained access to a massive database of private company information to expand its own coverage. This consolidation aims to bring greater transparency to the markets and enhance data-driven risk solutions.
• In June 2024, Bloomberg announced the launch of a comprehensive data solution designed to help financial firms comply with the European Union's Corporate Sustainability Reporting Directive. This new offering provides access to data reported by companies under the directive, mapping the European Sustainability Reporting Standards to existing data fields. The solution covers a vast number of companies and includes historical data to facilitate efficient sustainability reporting and investment decision-making. By integrating this high-quality ESG data alongside financial metrics, the service aims to streamline reporting processes for clients and assist them in understanding the sustainability profiles of their investments.
• In May 2024, Morningstar Sustainalytics implemented significant enhancements to its flagship ESG Risk Ratings to better support investors in identifying material risks. The company introduced an upgraded corporate governance methodology that aligns with its material ESG issues and added new measures to reflect areas of heightened scrutiny. These updates included the creation of standalone material ESG issues for corporate and stakeholder governance, aiming to provide a stronger signal on governance performance. This development represented the first major enhancement to the methodology since its inception, ensuring that the ratings remain relevant and useful as the global risk environment evolves.
• In February 2024, MSCI Inc. launched a centralized hub designed to provide general partners with access to private companies' sustainability and climate data. This new platform, known as MSCI Private Company Data Connect, enables private firms to report their data to investors through a secure, digital interface. The initiative was developed to drive transparency and establish a common language for investors in private markets regarding sustainability disclosures. The launch included a collaboration with a carbon management and accounting platform to help companies close emissions reporting gaps, thereby supporting evolving regulatory reporting requirements and investment due diligence.

Key Market Players

• MSCI Inc.
• Iris Carbon
• S&P Global
• ISS Governance
• Bloomberg
• PricewaterhouseCoopers (PwC)
• Carbon Disclosure Project (CDP)

By Service Type	By Application	By Region
ESG Assessment and Ratings ESG Data Verification ESG Reporting and Disclosure ESG Strategy Consulting Assurance and Compliance Services Other Customized ESG Solutions	Investment and Asset Management Corporate Governance and Risk Management Sustainability and Supply Chain Management Climate Change and Resource Management Other Sector-Specific Application	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global ESG Rating Service Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• ESG Rating Service Market, 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

• ESG Rating Service Market, 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

• ESG Rating Service Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE