ESG controversy score

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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.

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