have also created complications for the ESG ratings industry, as the landscape for ESG ratings products is being continually reshaped. The article also discusses various issues concerning ESG ratings and provides key takeaways about the prudent deployment of ESG ratings products. ESG Ratings Methodologies: Key ConsiderationsEach ESG ratings provider has created a unique scoring system, or methodology, for computing company ratings. The following non-exhaustive list details components and metrics that are frequently employed by commonly used ESG ratings providers:ESG Pillars ESG Ratings Components ESG Ratings Metrics Environmental Air pollution; energy consumption; waste; natural impacts; and conservation efforts. Common ESG Ratings ProvidersDozens of organizations offer ESG ratings products, many of which serve different purposes.

Source: Wall Street Journal May 20, 2024 20:49 UTC