# ESG Rating

*ESG & Sustainable Finance — Finicade finance glossary*

An ESG rating scores a company on environmental, social and governance criteria. The defining problem is disagreement: correlations between major providers' ratings run around 0.4–0.6, against roughly 0.99 for credit ratings, because each provider chooses different indicators and weights. A high ESG score is a statement about one methodology, not an observation about the world.

**Also known as:** ESG score, sustainability rating, MSCI ESG rating

**Related terms:** [ESG](https://finicade.com/glossary/esg), [Greenwashing](https://finicade.com/glossary/greenwashing), [Double Materiality](https://finicade.com/glossary/double-materiality), [Sustainable Investing](https://finicade.com/glossary/sustainable-investing), [Credit Rating](https://finicade.com/glossary/credit-rating)

Source: https://finicade.com/glossary/esg-rating