“Investors are increasingly using ESG ratings for their investment decisions. But we need to assign companies a stand-alone rating focused on climate risk that’s distinct from the ESG rating system. Such a climate-specific rating can distill complex information regarding a company’s carbon footprint and climate risk into an intuitive, user-friendly format, while avoiding the flaws that currently mar ESG ratings.”
[COMMENTARY]The argument is that many investors would want this.
It’s Time to Give Companies Standalone Climate Ratings, by Felix Mormann and Milica Mormann, May 24, 2022, Harvard Business Review, USA.