Date of Award
Bachelor of Business Admin.
Joyce van der Laan Smith
According to the Harvard Business Review article ESG Investing Isn’t Designed to Save the Plant (Pucker and King 2022), the term ESG investments – which stands for environmental, social, and governance investing – often confuses investors because it is unregulated. Additionally, the author continued to claim that the data is outdated and mostly unaudited. Even if data on these investments is available to investors, it can still be challenging for them to make decisions regarding ESG. Trusting compatibility and accuracy can be difficult considering that companies can choose how to produce or calculate their own ESG data. Another claim that Pucker and King made in their article was that ESG ratings cost 40 percent higher than other traditional investments. If this is the case, why would companies invest in ESG if it does not directly help them improve their performance? ESG has not been widely implemented partly because of the many back-and-forth arguments on whether it is worth the investment. Despite the current difficulties in widespread implementation of ESG investing, industries around the world continue to face the growing challenge of reducing carbon emissions.
Lam, Logan, "ESG Reporting and Its Effect on Financial Performance of Oil, Gas, and Utility Companies in the United States" (2023). Honors Theses. 1697.