Core Viewpoint - The article emphasizes the growing importance of ESG (Environmental, Social, Governance) ratings for listed companies, driven by the "dual carbon" goals and global sustainability trends, marking a shift from voluntary to mandatory disclosure in China by 2025 [2][6]. ESG Rating Data System - The ESG rating system employs a nine-tier framework from C to AAA, integrating over 130 underlying indicators across the E, S, and G dimensions, with a focus on real-time updates through a data-driven algorithm [3]. - The dynamic adjustment mechanism ensures fairness in ratings by calibrating the highest and lowest scores within industries, revealing significant disparities in environmental governance among sectors [3]. Innovation Driven by ESG Ratings - A four-level indicator system allows for comprehensive assessments of corporate sustainability, enabling companies to improve their ESG ratings through detailed disclosures [4]. - Visualization tools and AI models transform ESG data into actionable insights, enhancing decision-making for financial institutions and improving investment accuracy [5]. Policy and Market Drivers - The new mandatory disclosure regulations effective from July 1, 2025, require over 450 A-share companies to publish ESG reports, covering more than 50% of market capitalization [6]. - The "double materiality" principle introduced in new regulations aligns Chinese ESG reporting with international standards, enhancing the recognition of Chinese companies' ESG ratings by MSCI [7]. Industry Analysis of ESG Ratings - The software services industry shows significant variability in environmental scores, with a notable disparity in environmental governance practices [8][9]. - The food and beverage sector has seen a substantial improvement in social dimension scores, driven by initiatives that enhance community welfare [9]. Challenges and Future of ESG Ratings - The risk of "greenwashing" poses a challenge, with studies indicating that ESG ratings can mitigate this risk, particularly in non-polluting industries [10]. - Competition among ESG rating agencies is shifting from quantity to quality, focusing on algorithm transparency and industry customization [10].