SustainAbility sets forth vision of what corporate sustainability ratings must be in the future

12 Jul 2011 – News Release

July 12, 2011, London, NYC – SustainAbility has concluded its four phase research project on corporate responsibility ratings by setting forth its vision for the necessary future of ratings.

Rate the Raters is a research program in which SustainAbility has worked to better understand the universe of corporate sustainability ratings and to influence and improve the quality and transparency of such ratings. The first phase explored key trends and changes in ratings over the last decade. Phase two inventoried over 100 ratings globally and phase three conducted in-depth evaluations to better understand how they work in practice.
In the fourth and final phase, SustainAbility presents its vision for what ratings must be in the future, believing that ratings should:

• Be financially viable. Today many ratings are not and thus cannot invest adequate resources to improve and evolve.
• Compete on analysis and not on data collection. Fewer players need to specialize in data compilation and more players need to use this information to compete on research and analysis.
• Add value to all players. Those that thrive will bring the greatest insight and best recommendations.
• Be predictive and forward looking, telling how a company is positioned to compete in the future rather than how it fared in the past.
• Be consistent yet adaptive. Companies benefit from methodologies that are constant, but the sustainability agenda is continually evolving; a fine balance needs to be struck.
• Focus on core impacts and issues. No longer should an investment bank be compared with a food company; ratings going forward will not be universal or standard across sectors.
• Be transparent. Those that reveal methodologies, results, conflict of interest will build trust and stimulate demand.

While the number of ratings may continue to rise in the near term, SustainAbility believes that the number will soon begin to decline – those that thrive in the future will be those that work hardest to improve the quality of their ratings and those that seek to increase the amount they disclose.

For additional insights watch SustainAbility’s video briefing or download the full phase four white paper.