ESG controversy score: Difference between revisions
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== Other resources == | == Other resources == | ||
*[https://www.msci.com/documents/1296102/14524248/ESG-Research-Controversies-Methodology.pdf MSCI ESG Controversies and Global Norms Methodology - November 2023] | *[https://www.msci.com/documents/1296102/14524248/ESG-Research-Controversies-Methodology.pdf MSCI ESG Controversies and Global Norms Methodology - November 2023] | ||
*[https://www.lseg.com/content/dam/data-analytics/en_us/documents/methodology/lseg-esg-scores-methodology.pdf Environmental, social and governance scores from LSEG - December 2023 | *[https://www.lseg.com/content/dam/data-analytics/en_us/documents/methodology/lseg-esg-scores-methodology.pdf Environmental, social and governance scores from LSEG - December 2023] | ||
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Revision as of 06:33, 15 February 2024
ESG investment - ESG ratings - reputational risk.
In the context of investment, an ESG controversy is an allegation, event, or series of events in which a company is associated with negative environmental, social or governance impacts.
Examples of ESG controversies include oil spills, law-breaking and anti-competitive trading practices, among many others.
ESG controversies are a reputational risk to the companies involved, potentially leading to secondary operational and financial harm, and future economic losses.
ESG controversy scores are a systematic evaluation of the number and severity of ESG controversies relating to the company under review.
ESG controversy scores are calculated and published by a number of different financial information providers.
All other things being equal, a company's adverse ESG controversy score indicates that the company is considered to be a riskier and less attractive investment on this measure.
See also
- Corporate governance
- Corporate social responsibility
- ESG investment
- ESG ratings
- ESG stock
- Green finance
- Impact investing
- Investment
- Negative screening
- Norms-based screening
- Positive screening
- Reputational risk
- Sustainability
- Sustainability themed investing
