What are ESG ratings? How are they being used? Should business leaders be worried about their scores? Should investors give credence to ESG ratings?
Because ESG ratings are primarily a product for investors, ratings providers don’t offer much education for the companies being rated. Still, it’s important for business leaders to understand ESG ratings and how they should be integrated into a larger ESG strategy.
Investors will find this guide useful for understanding how ESG ratings are created and their limitations for decision making.