Software · ESG ratings and risk, cited
ESG risk software: ratings, screening and the 2028 UK regime
ESG risk software scores, screens and analyses companies for investors and lenders, and ESG ratings are its most visible output.
In the UK a rating is an unregulated opinion until 29 June 2028; in the EU the ratings regime has applied since 2 July 2026.
What the software does
What does ESG risk software do? From raw data to a decision
ESG risk software turns company disclosures and other data into scores, screens and analytics that investors and lenders use.
The best tools in this family are remarkably capable at scale, reading thousands of issuers on a consistent method.
The other side of the same coin is the rated company’s own reporting, for which see ESG software.
A financial firm’s own regulatory outputs are covered on sustainable finance software.
- 1
Collect
Company disclosures, estimates and third-party data.
- 2
Score
A rating or score against a stated methodology.
- 3
Screen
Exclusions and thresholds across a universe.
- 4
Analyse
Portfolio exposure, trends and risk.
- 5
Report
Evidence for fund claims and client reports.
What a rating is in law
Is an ESG rating regulated today? In the EU yes, in the UK from 2028
The UK Order, SI 2025/1349, was made on 15 December 2025 and makes providing an in-scope ESG rating a regulated activity from 29 June 2028.
Its test is whether the rating “is likely to influence a decision to make an investment”, under new RAO article 63U.
HM Treasury’s Explanatory Memorandum names supply chain management among the non-investment uses providers should weigh, so supplier ratings are a judgement, not a carve-out.
In the EU, Regulation (EU) 2024/3005 has applied since 2 July 2026.
The UK ratings perimeter
In scope
The UK ratings perimeter
Out of scope
The UK ratings perimeter
Certification
Law, later or proposed
Which ratings rules bind you? It depends which side you sit on
A ratings provider, an investor using ratings and a company being rated meet different rules.
The FCA’s detailed rules are still proposals: CP25/34 closed on 31 March 2026, and the FCA planned a Policy Statement in Q4 2026 that this site had not found as at 23 October 2026.
Its April 2026 reporting pilot “does not indicate final policy”.
The checker beside this sorts each instrument by what it is today.
ESG ratings rules · pick who you are
0 binding now · 2 made but applying later · 1 proposed only · 1 voluntary
| Instrument | Status | Source |
|---|---|---|
| UK ESG ratings Order, SI 2025/1349 Made, applies later | Made 15 December 2025; providing an in-scope rating becomes a regulated activity on 29 June 2028. | SI 2025/1349 art 2 |
| FCA authorisations gateway Made, applies later | Planned to open in June 2027. | CP25/34 ¶1.22 |
| FCA ESG ratings rules (CP25/34) Proposed only | Consulted to 31 March 2026; Policy Statement planned for Q4 2026, not published as at 23 October 2026. | FCA CP25/34 |
| Voluntary industry code Voluntary | The industry-led code of conduct for ESG ratings and data products, launched 2023. | FCA |
Each status is dated to the instrument linked beside it; a proposal is never shown as law.
Nothing is stored or sent.
What the FCA proposes
What will a UK ratings provider have to show? Five areas, still proposed
CP25/34 proposes to apply the FCA’s baseline standards to ratings providers plus tailored rules in five areas, in ¶1.15 of the consultation.
Those five areas are a useful buying checklist for any user of ratings today, even before they bind.
The FCA plans to open its authorisations gateway in June 2027, a year before the regime starts.
| Area | What CP25/34 proposes |
|---|---|
| Transparency | Minimum disclosure of methodologies, data sources and objectives |
| Systems and controls | Quality control, data validation and methodology reviews |
| Governance | Operational responsibility over the ratings process, including outsourcing |
| Conflicts of interest | Identify, prevent, manage and disclose |
| Stakeholder engagement | Rated entities may correct factual errors; complaints handling |
The EU regime
What does the EU regime already require? Notification, then authorisation
The EU Regulation applies from 2 July 2026, and existing providers had to notify ESMA by 2 August 2026 and apply within four months.
ESMA publishes the list of firms that have notified, which a user can check before relying on a provider for EU business.
A notified firm is not yet an authorised one, so the status line matters.
The tests before you sign
Eight questions for any ESG risk platform, each tied to its source
Each question names the source it comes from; several cite proposals, and are marked so.
Ask them of a score you already use, on an issuer you know well.
Nothing on this page is a rating, ranking or recommendation of any product.
ESG risk demo questions · tick the ones you need
The pass tests are our reading of the cited provisions.
Nothing you tick is stored or sent.
The vendors
8 vendors serving investors and raters, in their own words
These teams bring serious data and analytics capability; ask each whether its ratings or scores fall within RAO article 63U.
8 vendors, own words
Computed
8 vendors, own words
Alphabetical
8 vendors, own words
Their words
8 vendors, own words
Ask in writing
For the board
An ESG rating is an opinion today, and from 29 June 2028 it becomes a regulated one in the UK.
Plan supplier and investor relationships around that date.
Takeaways
ESG risk software, in five facts
| Fact | What it means |
|---|---|
| The UK Order is made law | SI 2025/1349, made 15 December 2025. |
| It bites on 29 June 2028 | Ratings are unregulated opinions until then. |
| FCA rules are proposals | CP25/34; final rules planned for Q4 2026. |
| The EU regime applies now | From 2 July 2026, with ESMA notification. |
| Supplier ratings have no UK carve-out | The art 63U test decides. |
- 15 Dec 202501
- 31 Mar 202602
- 2 Jul 202603
- Jun 202704
- 29 Jun 202805
Next: if you are a supplier being rated, see EcoVadis software.
Frequently asked
ESG risk software, answered
What is ESG risk software?
Software that scores, screens and analyses companies on environmental, social and governance factors, used by investors and lenders to build portfolios, manage risk and report to clients.
Ratings, screening and analytics tools are the same family.
Are ESG ratings regulated in the UK?
Not yet.
The Order bringing ESG ratings into the FCA’s perimeter, SI 2025/1349, was made on 15 December 2025, and providing an in-scope rating becomes a regulated activity on 29 June 2028.
Until then ratings are unregulated opinions.
What will the FCA require of ratings providers?
Its proposals in CP25/34 cover transparency of methodology and data, systems and controls, governance, conflicts of interest and stakeholder engagement.
They are proposals: the FCA planned final rules in a Policy Statement in Q4 2026, which this site had not found as at 23 October 2026.
When must UK ratings providers apply?
The FCA plans to open its authorisations gateway in June 2027, a year before the regime comes into effect on 29 June 2028.
What counts as an in-scope rating?
RAO art 63U: providing an ESG rating is in scope where it “is likely to influence a decision to make an investment”, and out where the provider “could not reasonably have expected” it to.
Whether it was solicited is immaterial.
Are supplier ratings like EcoVadis in scope?
The UK Order has no carve-out naming them, and no text decides it.
In the EU, EcoVadis says its ratings are within the EU Regulation and notified ESMA, appearing on ESMA’s list of notified firms.
Does the EU regulate ESG ratings now?
Yes.
Regulation (EU) 2024/3005 has applied from 2 July 2026.
Existing providers had to notify ESMA by 2 August 2026 and apply for authorisation within four months of 2 July 2026.
What is ESG screening software?
Software that applies exclusions or thresholds to a universe of issuers, often using ESG data or ratings.
For a UK fund, the anti-greenwashing rule and SDR require its sustainability claims to be supported by evidence.
How can a rated company respond to a poor rating?
Publish clear disclosures and check what each provider used.
The FCA proposes rules giving rated entities the opportunity to correct factual errors, which would apply once the regime is live.
Is ESG risk software the same as ESG reporting software?
No. Reporting software prepares a company’s own disclosures; risk software reads other companies’ disclosures and data.
Many vendors offer both.
Has this site rated any ESG risk platform?
No. The vendor table repeats what each vendor says about itself, alphabetically, and ranks nothing.
Sources
Primary sources
Every rule on this page traces to the instrument listed here; proposals are labelled as proposals.
- legislation.gov.ukFSMA 2000 (Regulated Activities) (ESG Ratings) Order 2025 (SI 2025/1349)
Made 15 December 2025; main commencement 29 June 2028; RAO arts 63U to 63Z7.
- HM TreasuryExplanatory Memorandum to SI 2025/1349
The non-investment uses firms should weigh, including supply chain management.
- legislation.gov.ukRegulated Activities Order 2001 (SI 2001/544)
Chapter 15F, inserted by the 2025 Order.
- Financial Conduct AuthorityCP25/34: ESG ratings — proposed approach to regulation
Consultation closed 31 March 2026; final rules planned for Q4 2026.
- Financial Conduct AuthorityCP25/34 (PDF), ¶¶1.15, 1.21–1.22
Proposed tailored rules; authorisations gateway in June 2027.
- Financial Conduct AuthorityFCA invites ESG rating providers to join a voluntary reporting pilot (28 April 2026)
The pilot “does not indicate final policy”.
- Financial Conduct AuthorityClimate change and sustainable finance
Final rules expected by the end of 2026; the voluntary industry code.
- EUR-LexRegulation (EU) 2024/3005 on ESG rating activities, Arts 51 and 53
Applies from 2 July 2026; transitional notification and authorisation.
- ESMAList of firms that have notified ESMA under Article 51
Notified, not yet authorised.
- Financial Conduct AuthorityFCA Handbook ESG 4 — SDR labels and the anti-greenwashing rule
How a fund that uses ratings must evidence its claims.
- EUR-LexRegulation (EU) 2019/2088 (SFDR)
EU product disclosures that often draw on ESG data.
- Financial Conduct AuthorityPS26/19 — final rules on UK SRS reporting by listed companies
The disclosures rated companies will publish from 2027.
- Department for Business and TradeUK SRS S2 Climate-related Disclosures (PDF)
The climate data raters will read.
- Department for Business and TradeUK SRS S1 General Requirements (PDF)
Sustainability-related risks and opportunities.
- Department for Business and TradeUK Sustainability Reporting Standards S1 and S2
Published 25 February 2026.