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    Introducing DMCC's first dedicated ESG ratings report

    Navigating ESG ratings across the globe & GCC

    A guide for companies, investors, and creditors

    Environmental, social and governance (ESG) ratings are used in investment and credit assessments and can be relevant to customer and procurement requirements. Yet companies may be rated without requesting an assessment, while different providers can reach different conclusions about the same business.

    Jointly developed by DMCC and Finvizier Consultancies FZCO, this report examines 11 global rating providers and initiatives, drawing on qualitative interviews with ten rated UAE companies and questionnaire input from international rating providers

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    Combining global research with UAE perspectives, it explains how ESG ratings work, why they differ and what businesses need to know to interpret assessments and prepare more effectively.

    Key findings

    What the research reveals

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    0.54

    Average correlation between ESG ratings from six agencies

    A 2022 academic study found an average pairwise correlation of 0.54 between ESG ratings from six agencies, highlighting how assessments of the same companies can differ.

    Source: Chapter I.

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    6 in 10

    UAE companies interviewed cited customer, procurement and supply-chain expectations

    Separately, six of the ten companies also cited investor, financing and market-access considerations as reasons for engaging with ESG ratings.

    Source: Chapter II, Section 2.2.

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    8 in 10

    UAE companies interviewed called for greater consideration of regional context

    Respondents highlighted the need for ESG rating methodologies to better reflect regional, legal or geopolitical conditions.

    Source: Chapter I, Section 1.3.

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    9 in 10

    UAE companies interviewed highlighted ESG data and disclosure quality

    Strong data, supporting evidence and disclosure quality were identified as important factors for improving ESG rating outcomes.

    Source: Chapter IV, Section 4.2.

    Why ESG ratings matter

    Not all ESG ratings measure the same things. Some assess sustainability-related risks to a company, while others consider its impacts on people and the environment. Providers also differ in their data sources, methodologies and scoring systems.

    A higher score may represent a more favourable assessment under one methodology, while a lower score may indicate less ESG risk under another.

    Knowing what a provider measures and how it reaches its assessment can help companies interpret their ratings, identify disclosure gaps and respond to relevant investor, creditor and customer expectations.

    ESG Report

    Inside the report

    Foundations of ESG ratings

    What does an ESG Rating really measure?

    ESG ratings are not all designed to answer the same question. Some focus on sustainability-related risks to a company, while others consider its environmental and social impacts.

    This chapter explains how ESG ratings are developed and interpreted, why providers can reach different conclusions about the same company, and the role of methodology, transparency and regional context.

    Understand the foundations of ESG ratings and the factors behind different assessments.

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    Use of ESG ratings

    Who uses ESG Ratings and why?

    From investment screening and portfolio management to credit risk assessment and corporate benchmarking, ESG ratings serve different purposes across financial and business markets.

    This chapter examines how investors, creditors, companies and stock exchanges use ESG ratings, alongside findings from UAE businesses on the commercial and financial considerations driving their engagement.

    Discover where ESG ratings feature in business decisions and stakeholder expectations.

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    Overview of global ESG ratings

    How do global rating providers compare?

    Different providers assess different ESG factors, use different data sources and apply different scoring systems. Their assessment timelines and participation requirements can also vary.

    This chapter examines 11 global providers and initiatives, comparing their methodologies, assessment focus, data requirements and rating processes to help companies understand the distinctions between them.

    Compare how providers assess companies and what information they may require.

    chapter 3

    Conclusions and recommendations

    What does better ESG rating readiness require?

    Preparing for an ESG assessment starts with understanding the relevant requirements and the information available within the business.

    Drawing on the research findings, this chapter presents six practical steps covering ESG profile reviews, material issues, governance, disclosure, supporting evidence and verification, and external expertise where needed.

    Review practical recommendations for strengthening ESG data, governance and assessment readiness.

    chapter 4-1

    Understand what's behind the ratings

    Access the full research to examine global ESG rating methodologies, perspectives from UAE companies and practical recommendations for businesses navigating ESG assessments.

    Research jointly developed by DMCC and Finvizier Consultancies FZCO.

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    Get your copy of the ESG report

    Understand what’s behind the rating. Complete the form to access the full research on global ESG rating methodologies, insights from rated UAE companies, and 6 practical steps to improve assessment readiness.