We present findings and analysis from our surveys of environmental, social and governance (ESG) rating users and providers, exploring the UK ESG ratings market.
In December 2025 we launched a consultation on rules to improve transparency and trust in the ESG ratings market. A robust evidence base was critical to the design of the regime and our cost benefit analysis.
To build an evidence base we surveyed 111 ESG rating users drawing on a representative sample of the financial services sector and 26 ESG rating providers.
We structure our analysis and findings around 4 key questions about the use of ESG ratings, the risks of harm users face in the market, as well as the business structure of their providers and their practices. Our main research questions were:
- How are ESG ratings used in the financial services sector?
- What risks of harm do regulated firms face when using ESG ratings?
- What are the primary business models employed by ESG rating providers?
- What are the current practices of ESG rating providers?
Authors
Alex Botsis, Rachel Ennis, Umair Malik, Anya Martin, Kieran Odedra, Arti Ranjan, Vanessa Le Blanc
Disclaimer
Research notes contribute to the work of the FCA by providing rigorous research results and stimulating debate. While they may not necessarily represent the position of the FCA, they are one source of evidence that the FCA may use while discharging its functions and to inform its views. The FCA endeavours to ensure that research outputs are correct, through checks including independent referee reports, but the nature of such research and choice of research methods is a matter for the authors using their expert judgement. To the extent that research notes contain any errors or omissions, they should be attributed to the individual authors, rather than to the FCA.