Why inconsistent scores, opaque methods, and greenwashing are undermining ESG progress.
The Problem at a Glance
ESG ratings are everywhere—but can we trust them?
Different agencies, different scores, no single source of truth.
No Universal Framework
One company, many scores. Why?
Rating agencies like MSCI, Sustainalytics, and others use inconsistent methodologies, leading to conflicting ESG results.
Opaque Scoring Models
Do we even know how scores are calculated?
Most agencies use proprietary algorithms with unclear weighting schemes and unverified data. Transparency is often missing.
A High Score Can Be Misleading
Good ESG score ≠ Good ESG behavior.
Favorable scores can be given despite weak environmental or social practices due to imbalanced metrics.
Greenwashing on the Rise
The illusion of sustainability.
Some companies use ESG scores to overstate their impact—appearing responsible without real change. This is greenwashing.
What’s the Solution?
To fix the system, we need:
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Global ESG reporting standards (e.g., ISSB, CSRD)
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Transparent scoring methodologies
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Verified data
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Smarter investor due diligence
Final Message
ESG should drive real change—not just better optics.
Let’s push for a future where ESG ratings are credible, consistent, and trusted.
