The last two years has seen a surge of activity from research houses seeking to differentiate themselves on the basis of their ESG rating methodologies.

Morningstar research formally integrated ESG into its analysis of shares, funds, and managers. Following their purchase of Sustainalytics they also launched a new rating for managers, the ESG Commitment level, which sits alongside its existing classifications.

Lonsec integrated its ESG biometric scores into its main fund rating model and entered a partnership with ESG research provider Sustainable Platforms. Zenith launched a Responsible Investment Classification to sit alongside its traditional ratings.

Of course, with no consensus on definitions and the subsequently wide variety of (proprietary) approaches taken, the proliferation of ESG research doesn’t necessarily make it easier for advisers to assess any given fund against their clients’ ESG preferences.