Let’s not get carried away about ESG ratings

By Susanna RustJuly/August 2022 (Magazine)

Elon Musk’s reaction to Tesla dropping out of the S&P ESG 500 index and the publication of a high-profile paper on the ‘Aggregate Confusion’ of ESG ratings have helped trigger a renewed discussion about ESG ratings. At a time when the European Commission and UK rule-makers weigh potential regulatory action, it is important to be clear about what the problem is that needs to be solved and for whom.