The research investigates the disagreement in Environmental, Social and Governance (ESG) ratings between rating providers. Three factors are identified: measurement divergence, scope divergence and weight divergence. The paper argues for a standardisation of ESG indicators and measurement procedures to reduce the discrepancy in ESG ratings.

MIT Sloan School of Management is one of the five schools within Massachusetts Institute of Technology located in Cambridge, USA. One of the most renowned business schools in the world, it puts an emphasis on innovation and research.