It’s Time to Change How ESG Is Measured

It’s Time to Change How ESG Is Measured

“Our research shows that ESG ratings — and thus the investments associated with these ratings — are suffering from a “measurement trap” that occurs when a metric used as part of the ESG rating is systematically biased toward certain industries or certain types of companies.”

[COMMENTARY] This is an insightful article on ESG measurements and how they might be changed to assist in investment analysis and selection.
It’s Time to Change How ESG Is Measured, by Lauren Cohen, Umit G. Gurun, and Quoc Nguyen, July 10, 2024, Harvard Business Review, USA.

 

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