ESG Scoring Is Failing: Time For Improvement.

ESG Scoring Is Failing: Time For Improvement.

“While companies are developing more comprehensive criteria, the standards are far from consistent. The reasons for the inconsistencies are numerous, but of greatest concern is the bias of ratings and the lack of public disclosure about the criteria and standards used in making those ratings.”

[COMMENTARY] I find that many company ESG ratings’ firms do provide considerable information concerning how they score the companies they rate. I think it’s the individual companies — and not the ratings’ firms — that need numerical consistency in their reporting. I see the ratings’ firms more like equity analysts — who vary (often greatly) in their analytical methods and conclusions.
ESG Scoring Is Failing: Time For Improvement, by George Strobel, July 2, 2020, Forbes, USA.

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