ESG Data and Review from Stanford University

Stanford University has recently produced two ESG-related papers/articles: ESG Ratings: A Compass without Direction and Measuring Corporate Vice and Virtue.

ESG Ratings: A Compass without Direction

In this Stanford Closer Look Series paper, the authors review the demand for ESG information, the stated objectives of ESG ratings providers, how ratings are determined, the evidence of what they achieve, and structural aspects of the industry that potentially influence ratings. Why do ESG ratings so often fail to meet their stated objectives?

Measuring Corporate Virtue and Vice 

In a recent Stanford Lawyer article, Stanford Law Professors Colleen Honigsberg and Paul Brest suggest that financial reporting practices can be applied to high-quality ESG reporting. They recommend (1) a robust framework that captures a company’s major ESG metrics and permits comparisons among different companies; (2) a standard-setting body to develop those metrics; and (3) reporting infrastructures that allow companies to accurately collect, report, and verify the relevant metrics.