ESG: Credibility behind the scores : The reliability and transparency of ESG ratings

Abstract

The emergence of sustainability in business has led to a growing number of market players becoming concerned about ESG rating, which includes environmental, social and governance aspects. Investors are also pricing in the scores generated by ESG indicators. The growing interest in ESG data raises the question of the reliability of the scores provided by different ESG rating agencies. This research explores the differences in the methodologies used by the most reputable ESG rating agencies through a content analysis. The inconsistency of ESG scores will be investigated by taking a random sample of companies in eight pre-selected industries and subjecting them to a correlation test. The purpose of this is to highlight the uncertainties associated with ESG ratings and to draw attention to the fact that ensuring the reliability, consistency, and transparency of ESG information remains an unresolved issue and challenge for both decision makers and users.

Green R & D investment, ESG reporting, and corporate green innovation performance

“…Traditionally, research on ESG reporting focused on its role in enhancing a company’s legitimacy rather than directly investigating its motivations. For example, Mayer & Ducsai [ 50 ] found that emphasizing tax benefits and minimizing information asymmetry are seen as key benefits of ESG reporting for enhancing a company’s image of responsible conduct.…”

From Pseudo to Genuine Sustainability Education: Ecopedagogy and Degrowth in Business Studies Courses

“…Although there has been a rapid spread of ESDG-supporting institutions, this has occurred without a serious critique of SDGs (Kopnina, 2020). As sustainability or ethics-centred business courses are emerging, many of the programs unquestionably embrace ESDG (for a review of sustainable business programs) (Kopnina & Benkert, 2022;Mayer, 2021). In the article tellingly titled "Business as Usual Will Not Save the Planet" Kramer et al (2019) inquire whether the companies are advancing serious solutions inspired by SDGs or are simply greenwashing.…”

“…Their answer indicates that the latter is true. While many business schools have introduced elective courses on topics such as environmental, social, and corporate governance (ESG), they have been slow to recognize the extent of reform required for their curricula (Mayer, 2021). Publications in the Journal of Business Ethics Education (e.g., Hales & Phi, 2021;Westerman et al, 2020) tend to equate SDGs with sustainability and assume it is desirable to integrate them into business curricula, treating SDGs as something that should be accepted without question.…”