Research | Aggregate confusion: the divergence of ESG ratings
Aggregate confusion: the divergence of ESG ratings
15 August 2019
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.
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