Ep. 317 What You Need to Know About ESG Ratings and Their Impact on Business

Perspectives in Business

ESG (Environmental, Social, and Governance) is a very broad field of expertise with many challenges ranging from diversity, investments, and the impact on the environment that any organization has, and even many of these companies are redesigning their business models to adjust themselves to these challenges. However, one of the pillars of ESG is the ratings. In this episode, my guest is Florian Berg. Florian Berg is a research scientist at the MIT Sloan School of Management; his research interests cover sustainable investing with a focus on ESG ratings, the disagreement between different rating agencies, and how it affects investors, firms, and academic research. What is the definition of ESG rating, and why are they important for organizations? How can we identify if a company has good performance in ESG ratings? What would be a good ESG rating? Is rating ESG rating agencies the solution for this task? What industries have more challenges measuring ESG ratings?