BUSINESS

ESG ratings don't mean what you think

Business, William Hicks, Published on 26/12/2020

» Environmental, social and governance (ESG) ratings and sustainability stock indices based on ESG scoring have become the hot new trend among retail and institutional investors, allowing them to evaluate companies based on sustainability and social development instead of simply profits and losses. ESG funds promise long-term growth as governments around the globe promise to scale down emissions to combat climate change.