Lies, damned lies and ESG rating methodologies.
"CLSA picks out one company which is a really good example — yes, it’s our old friend Tesla. According to CLSA, as of 17 September FTSE rated Tesla last for global auto ESG. MSCI, meanwhile, rated it best. In Sustainalytics’ rankings, it fell around the middle of the pack."
[COMMENTARY]So, thinking about Tesla’s ESG ratings makes one wonder what to believe. It is important for investors to understand the methodologies (where possible) of the ESG ratings’ agencies before deciding to use them.
Clearly, if you feel that the ratings’ agencies ’values systems’ don’t represent you, consider taking myTutorial: Creating A Profitable Personal Values-Based Portfolio. In that tutorial, I show you how to find, research, and evaluate stocks, mutual funds, and ETFs according to your personal values.
Lies, damned lies and ESG rating methodologies, by Kate Allen, December 6, 2018, FT Alphaville, UK.