ESG Rating Agencies: What is the Path towards a Bright Future?

The rise of sustainability is undeniable. Figures such as Pope Francis bring it up frequently, with the society giving it more importance. As companies know this, and are moving towards the cause, their evaluation is surely needed. ESG Rating Agencies fill this role in the market, and their present state has already been studied. I propose to study their future: what can be the future state and how to reach it successfully. Through seven structured interviews to individuals directly involved (ESGRAs, CRAs and investors), I get to know their opinion on Best Practices, Challenges and Future State of the market. After analyzing and comparing their thoughts, it is clear that partnerships with Credit Rating Agencies are needed to survive and evolve. Moreover, whether consolidation and sector-specific ratings are positive, or Investor vs Issuer Paying Model, are some of the controversies emerged from the interviews, which I assess and can be interesting to explore further.