ESG is a set of standards meant to assess business practices in relation to sustainability and ethical concerns. An increasing number of financial-market participants use ESG-based ratings as a guidance for socially responsible investing – rather than simply buying assets they think will deliver the best returns.
They often use a 1-to-100 ratings scale, determined by research firms like S&P Global and Morningstar., and fails to properly rate companies based on their social contributions.
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Source: Reuters - 🏆 2. / 97 Read more »