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There’s a problem with most major environmental rankings of businesses: Too often, the ratings fail to incorporate advocacy activities that influence environmental regulation.
There’s a problem with most major environmental rankings of businesses: Too often, the ratings fail to incorporate advocacy activities that influence environmental regulation.
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1 Comment On: The Factor Environmental Ratings Miss
I happen to agree with the sentiment of this article, but it is also a classic “slippery slope” in that it looks to punish advocacy and speech. ESG ratings are focused upon performance and corporate advocacy is certainly an element of performance. On the other hand, I’m sure ESG firms are wary of creating a screen for advocacy since it requires them to judge what’s “good” and what’s “bad”. Ratings and rankings need to be more objective and injecting further subjectivity into the process is undesirable.