ESG Investing Ratings Explained: How Companies and ETFs Are Scored Across Agencies

Ever see a company rated “AAA” by one ESG provider and “Medium Risk” by another, and wonder—how can both be true? If you’ve ever felt confused or skeptical about ESG scores, you’re not alone. In this episode, we break it all down in plain English.We’ll explain what ESG ratings actually measure, how agencies like MSCI, Morningstar/Sustainalytics, and S&P Global calculate their scores, and why the same company or ETF can get very different grades depending on who’s doing the rating.You’ll learn:What ESG ratings are and why they matter for investorsHow sustainable ETFs work and how they’re evaluatedWhat a Morningstar “ESG Risk Rating” means (and what “Low Risk” or “5 globes” actually tells you)How MSCI uses letter grades like AAA to CCC to rank funds and companiesWhy S&P Global uses a 0–100 scale, and how it reflects performance within industriesWhy scores vary across providers—just like credit scores or restaurant reviews.How to compare scores for your favourite fund or company and make smarter investment decisions