Fixing the Flaws of Current ESG (Environment, Social, Governance) Measures. An Approach to Setting New Standards

Academic Paper , 2019 , 28 Pages , Grade: 1,8

Business economics - Investment and Finance

Providing society with misleading information about corporate sustainability can affect the social legitimacy and trust of both companies and ESG rating agencies (Olmedo at al. 2019). Therefore, it is crucial to ensure that investments which are labelled as socially or ecologically responsible, are in fact socially or ecologically responsible. Without this legitimacy and trust, decreasing interest in these investments could have bad social and ecological global effects. Therefore, this essay dismantles the weak spots of current “green” metrics and indices to create a foundation for better, more transparent measurements and indices. The research question is: what are the current deficiencies of common metrics and indices and how can one improve them?

Table of Contents

Table of Figures

Table of Abbreviations

1. Introduction

2. Shades of Green

3. Green Investment Indices – What is Green and What Not?

4. Analysis and Evaluation of the MSCI ESG Ratings

5. An Approach to a More Complete Methodology

6. Outlook and Policy Advice

7. Conclusion

Bibliography

Appendix

• College: School of Oriental and African Studies, University of London (SOAS)
• Course: ESG Investing
• Grade: 1,8
• Author: David Höhl (Author)
• Publication Year: 2019
• Pages: 28
• Catalog Number: V492880
• ISBN (eBook): 9783346023414
• ISBN (Book): 9783346023421
• Language: English
• Tags: Ethisch, Investieren, Invest, ESG, klimawandel, Climate Change, Green, finance