?“As I explained in my recent three-part series on ESG ratings, the ratings reflect risks to companies and its shareholders, not necessarily to people and the planet. And while the ratings agencies insist they make that fact crystal clear, and most professional investors agree that they do, there remains a general — and not illogical — perception among many that high-scoring companies, from an ESG perspective, are ‘good’ companies for the world.
Moreover, ESG ratings primarily focus on whether a company has systems in place to manage their direct impacts and those of their supply chains. As such, they are relatively short-term in their focus.”
[COMMENTARY]I’m so glad that the author of this article, Joel Makower, makes it clear that a high ESG rating may have nothing to do with whether the company is benefiting people and the planet! Some big tobacco and fossil-fuel companies also have high ESG ratings!
Can Elon Musk save ESG? By Joel Makower, May 23 ,2022, GreenBiz, USA.