🥪 Food for thought

As the assets under ESG management were growing, so was the M&A activity in the ESG ratings provider landscape.  As you can see below, the market is becoming increasingly concentrated.  You can find a nice overview at: https://www.sustainability.com/thinking/rate-the-raters-2020/ When you want to buy the ESG ratings data (something I was involved in with all major … Continue reading “Are we heading towards an oligopoly in ESG ratings?”

The availability of industry-unadjusted granular data is also very important. With industry adjustment, a heavily-polluting firm can be classified as green if it pollutes less than other firms in its heavily-polluting industry. Check with your data provider where does industry adjustment take place.For many applications of ESG data, one should be usingindustry-unadjusted metrics.