Standard Ethics is an independent sustainability reporting rating agency based in London, known for its sustainable finance and ESG (Environmental, Social, Governance) studies. In 2001, it introduced a standardized approach to sustainability ratings. Methodologically, it separates Corporate Social Responsibility (CSR) from sustainability, seeing the latter as a global and systemic approach whose definition is not given by a single entity but by international institutions.
The Standard Ethics Business Model is based on the applicant-pay model. Like credit rating agencies, Standard Ethics sells solicited ratings, meaning it charges applicants for ratings. Once assigned, the rating and related analysis belong to the applicant. Conversely, under the investor-pay model, agencies charge investors a fee for a list of companies that warrant investment.
Standard Ethics Rating
The Standard Ethics Rating (SER) is a Solicited Sustainability Rating (SSR) evaluating how well companies and sovereign nations comply with the sustainability and corporate governance guidelines published by the United Nations (UN), the Organization for Economic Co-operation and Development (OECD), and the European Union (EU).
The rating does not use weightings and KPI-based analyses or indicators but applies a proprietary six-group variable algorithm.
Standard Ethics links the rating to an evaluation done both at a qualitative and quantitative level of the potential reputational risks for a company. This process aims to protect corporate assets, particularly corporate reputation. Companies believe that EU, OECD and UN recommendations suggest future legislative requirements. Therefore, complying with a standardized model like the SER could bring a competitive advantage.
The methodological approach of Standard Ethics was first introduced in 2001, and its ratings are based on a scale comprising nine letter grades: EEE; EEE−; EE+; EE; EE−; E+; E; E−; F; where "EEE" stands for 'above average'; "EE" for 'average'; and "E" for 'below average'.
Standard Ethics Clusters
Standard Ethics' clusters (formerly known as Index or Benchmark) are designed to measure how closely ESG policies align with international sustainability guidelines.
In April 2019, Standard Ethics announced its SE European 100 Index, whose index constituents have been selected according to their dimension, in terms of market capitalization.
To date (September 2026), Standard Ethics publishes the following clusters:
SE Belgian Cluster (composed of the 20 largest Belgium-listed companies with a Standard Ethics Rating).
SE Dutch Cluster (composed of the 30 largest Dutch-listed companies with a Standard Ethics Rating).
SE European 100 Cluster (composed of the 100 largest European listed companies based on market capitalization, with a Standard Ethics Rating).
SE European Banks Cluster (composed of the 40 largest European-listed banks with a Standard Ethics Rating).
SE European Fashion&Luxury Cluster (composed of the 20 largest European-listed companies in the sector with a Standard Ethics Rating).
SE European Multi-Utilities Cluster (composed of the 15 largest European-listed companies in the sector with a Standard Ethics Rating).
SE European Utilities Cluster (composed of the 30 largest European-listed companies in the sector with a Standard Ethics Rating).
SE Food&Beverage Sustainability Italian Cluster (composed of the 30 largest Italian companies in the sector with a Standard Ethics Rating).
SE French Cluster (composed of the 40 largest French-listed companies with a Standard Ethics Rating).
SE German Cluster (composed of the 30 largest German-listed companies with a Standard Ethics Rating).
SE Italian Banks Cluster (composed of the Italian-listed banks with a Standard Ethics Rating).
SE Italian Cluster (composed of the 40 largest Italian-listed companies with a Standard Ethics Rating).
SE Mid Italian Cluster (composed of 20 of the Italian-listed companies with the highest market capitalisation, following the largest ones).
SE Spanish Cluster (composed of the 40 largest Spanish-listed companies with a Standard Ethics Rating).
SE Mid Spanish Cluster (composed of 20 of the Spanish-listed companies with the highest market capitalisation, following the largest ones).
SE UK Cluster (composed of the 50 largest British-listed companies with a Standard Ethics Rating).
SE Unlisted Italian Banks Cluster (composed of the 25 largest Italian-unlisted banks with a Standard Ethics Rating).
The way Standard Ethics reports on its indices is based on full disclosure.
National Ratings
This is the situation for sovereign nations with a Standard Ethics Sustainability Rating as of April 2019. In 2013, Standard Ethics was the first to assign the rating to the Vatican City State.
↑As explained in a scientific publication of 2002: Jacopo Schettini Gherardini, "Introduzione" in "Etica, futuro e finanza", Schettini G. J. e Schettini G. L. (a cura di), Il Sole 24Ore, marzo 2002, Milano, Pag.9
