An ESG rating is an independent organisation's assessment of how well a business manages its environmental, social and governance risks and opportunities, expressed as a score or a rating grade. The result allows banks, investors and customers to compare businesses against a common standard, based on data and evidence rather than claims.
Key takeaways
- An ESG rating assesses data and evidence under a public methodology; it is not an accolade.
- VietESG uses a rating scale from AAA to CCC, with a system of more than 800 criteria, referencing GRI and the SDGs.
- Key benefits: access to green finance, meeting international customers' requirements and identifying gaps to improve.
How is an ESG rating carried out?
- Data collection: the business completes a questionnaire and provides supporting documents.
- Evidence checks: figures are cross-checked against original documents and public sources.
- Scoring under a public methodology for each of the E, S and G pillars, taking sector specifics into account.
- Rating on the AAA – CCC scale and a results report, including strengths and gaps.
How does a rating differ from an award?
| ESG rating | Awards and accolades | |
|---|---|---|
| Basis | Public methodology, evidenced data | Nomination file, organiser's criteria |
| Outcome | A comparable grade, covering both strengths and weaknesses | A title |
| Value to banks and investors | Usable in risk assessment | Mainly for communications |
Five benefits of an ESG rating
- Access to finance: evidence for banks when assessing green credit.
- Keeping and expanding markets: meeting the ESG requirements of international customers and supply chains.
- Identifying gaps: knowing exactly what to improve before the next reporting period.
- Greater credibility: an independent assessment reduces the risk of greenwashing accusations.
- Measuring progress: comparing results year on year.
An ESG rating is valuable when readers can see how it was produced.
When should a business get rated?
When a business is preparing to borrow, raise capital or join international supply chains, or after completing its first ESG report and wanting an independent view.
Frequently asked questions
What does the AAA – CCC scale mean?
AAA is the highest grade and CCC the lowest; the grade reflects how well ESG risks and opportunities are managed against the methodology's criteria.
Can a business without an ESG report be rated?
Yes, data and evidence are collected during the assessment; the results also provide a roadmap for the business to prepare its ESG report.
What standards is VietESG's ESG rating based on?
VietESG's methodology references international standards such as GRI and the United Nations Sustainable Development Goals (SDGs), and is published on vietesg.com.
VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.
