ESG Data Challenges: User Discretion is Advised

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Abstract

With the emergence of the Environmental, Social, and Governance (ESG) scores to account for corporate social performance, there lies an assumption of equivalence. The purpose of this chapter is to better understand the usability of the Thomson Reuters ASSET4 ESG score, through reflecting on the methodological challenges and implication from a theoretical perspective. The methodological constraints of the scores are found to be influenced in a variety of contexts. This chapter finds that the ESG score should not be taken at its composite value, but rather broken down and scrutinized at the singular indicator level. The view of ESG scores as a proxy for Corporate Social Responsibility (CSR) is challenged and the application of the score is considered from the pragmatic perspective of the intended user: investors.
Original languageEnglish
Title of host publicationMeasuring Sustainability and CSR : From Reporting to Decision-Making
EditorsSlobodan Kacanski, Johannes Kabderian Dreyer, Kristian J. Sund
Number of pages8
Place of PublicationCham
PublisherSpringer
Publication date2023
Edition1
Pages151-158
ISBN (Print)9783031269585
ISBN (Electronic)9783031269592
DOIs
Publication statusPublished - 2023
SeriesEthical Economy
Volume64
ISSN2211-2707

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