Use of Artificial Intelligence in ESG Rating Activities
Regulatory basis
This disclosure is made pursuant to Article 23 and Annex III, Point 1 of Regulation (EU) 2024/3005 of the European Parliament and of the Council on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities, and in accordance with the Regulatory Technical Standards issued by the European Securities and Markets Authority (ESMA) in October 2025.
Last reviewed: May 2026 | Next scheduled review: May 2027 | Updated whenever a material change is made to any AI component.
Ideal Ratings uses artificial intelligence (AI) and automated tools to support the production of ESG ratings across a number of processes. This page explains where AI is used in our rating activities, what each AI component does, and the limitations and risks associated with its use.
We are committed to transparency about the role of AI in our methodology. AI tools are used to assist our analysts — they do not replace human judgement. Every ESG rating produced by Ideal Ratings reflects the assessment of qualified analysts, and no AI component operates autonomously in the determination of a final rating or score.
The information below covers our Corporate ESG Rating product. AI disclosure for other rating products is set out separately where applicable.
Our Ai Approach
Human oversight at every stage: All AI outputs are reviewed by qualified analysts before being used in the rating process. Analysts have authority to override any AI-generated output.
AI assists, it does not decide: No AI tool independently determines a final ESG score or rating. Final scores and ratings are confirmed by lead analysts.
Transparency about limitations: We disclose the known limitations and risks of each AI component we use, and the controls we have in place to manage them.
Regular review and validation: All AI tools are subject to validation before deployment and reviewed at least annually. This disclosure is updated whenever a material change is made to any AI component.
Contact Us
If you have questions about Ideal Ratings’ use of AI in its ESG rating methodology, or about the information set out on this page, please contact us.
About Our Company
IdealRatings, Inc. is registered in Delaware, USA, with a registered address at 50 California Street, Suite 1500, San Francisco, CA 94111.