One of the major issues of ESG investing remains that there is no universal standard of how to rate a company and how to aggregate different risk factors. While the average correlation between credit ratings of Standard & Poor’s and Moody’s is about 0.9, the average correlation between the six biggest ESG rating agencies is about 0.46 as
Navigating the ESG Rating chaos
Navigating the ESG Rating chaos
Navigating the ESG Rating chaos
One of the major issues of ESG investing remains that there is no universal standard of how to rate a company and how to aggregate different risk factors. While the average correlation between credit ratings of Standard & Poor’s and Moody’s is about 0.9, the average correlation between the six biggest ESG rating agencies is about 0.46 as