ESG rating agencies
How MSCI, Sustainalytics, ISS and others rate companies — and how Spain merch buyers can use the ratings.
ESG ratings are scores assigned by independent agencies (MSCI, Sustainalytics, ISS ESG, S&P Global) to companies based on environmental, social and governance performance. They are increasingly material to large-corporate procurement and to investor scrutiny. For a Spain merch buyer, screening suppliers and partners by ESG rating is a meaningful filter — and your own supplier rating affects your downstream score.
How the ratings work: each agency uses its own methodology and weighting. MSCI uses an industry-relative AAA-to-CCC scale; Sustainalytics uses a risk-rating from Negligible to Severe; ISS uses a 1-10 numerical scale. Scores incorporate public filings, voluntary disclosures, controversy detection and supply-chain analysis. A score change of one band signals a material event — worth investigating before signing a multi-year contract.
For Spain merch procurement specifically, we recommend asking suppliers for their MSCI or Sustainalytics rating, or for the equivalent rating of their key textile and printing sub-suppliers. Our preferred Spain suppliers are MSCI BBB or better (which includes most professional operators in Madrid). The IVA 21% treatment is unchanged; the procurement-quality benefit is meaningful. We provide rating data in your supplier profile.
FAQ
Which rating matters most in Spain?
Depends on the buyer. EU public sector often uses ISS or proprietary scoring; large corporates often MSCI or Sustainalytics. Suppliers in Spain should be ready for any.
Are the ratings comparable?
Imperfectly. Two agencies can give the same company very different ratings due to methodology. Use multiple sources and look at trend over time.
How often are ratings updated?
Annually with continuous surveillance. Major controversies trigger immediate review. We monitor monthly for Spain customer-critical suppliers.
Cost to access ratings?
Free public summaries; full data behind paywalls (€10k-100k for enterprise feeds). We pass through high-level data for Spain customers at no charge.
Can a small supplier have a rating?
Below ~€100M revenue, formal ratings are rare. For small Spain suppliers we use surrogate criteria — certifications, audit reports, controversy screens.