Corporates continue to favour ESG rating providers they view as more active and practical, according to ERM’s latest Rate the Raters assessment, which highlights shifts in how companies judge the quality and usefulness of sustainability ratings.
The 2025 report finds that S&P Global ESG and CDP rank first and second respectively for overall quality, while EcoVadis has risen to third place, up from fifth in 2023. EcoVadis also moved to the top position for usefulness, climbing from seventh place two years ago. ERM said the change reflects growing demand for insights linked to supply chain sustainability.
ERM’s Rate the Raters programme has tracked sustainability ratings and rankings since 2010, with the aim of helping companies, investors and other stakeholders better understand the ESG ratings landscape. The latest findings are based on a survey conducted between May and July 2025, which gathered responses from 386 corporate sustainability professionals across 39 countries and a broad range of sectors. The results were supplemented by in-depth interviews and feedback collected during Climate Week NYC in September 2025.
According to the report, 84 per cent of companies expect to continue engaging with ESG ratings and consider them an important part of their sustainability strategies. At the same time, 77 per cent of respondents said closer alignment between rating methodologies and leading mandatory and voluntary sustainability standards is needed.
ERM noted that EcoVadis’ methodology is designed for interoperability across global frameworks, aligning its criteria with standards such as the UN Global Compact, ISO 26000 and GRI, as well as regulatory requirements including the European Sustainability Reporting Standards (ESRS). This approach allows companies to use data generated through a single rating to support multiple reporting and disclosure obligations across customers, investors and regulators.
“The ERM report confirms that usefulness is the new measure of leadership in ESG ratings,” said Pierre-François Thaler, co-founder and co-CEO of EcoVadis. “Our jump to number one reflects the urgent market pivot to supply chain compliance. At a time when three-quarters of companies demand alignment with reporting frameworks, the EcoVadis rating methodology delivers crucial interoperability.”
