“In their study, Lioui and his co-authors compared the data of several ratings agencies: Asset4 (Refinitiv), MSCI KLD, MSCI IVA, Bloomberg, Sustainalytics (Morningstar) and RobecoSam. Fitch, Moody’ MCO +0.2% and S&P also provide thousands of ESG data scores…
How do the ratings agencies decide how good or bad a company is at ESG? Mostly their assessment is based on a company’s own reporting with some other metrics thrown in from trade journals, news articles or other sources.”
[COMMENTARY] This situation continues to describe the need for standardized ESG reporting formats AND formal independent auditing of those reports by qualified professionals akin to chartered accountants or CPAs.
Ratings Agencies Punish Companies That Try To Do Good, by Ollie Williams, March 7, 2021, Forbes, USA.