ESG rating services are essential for investors. However, there is a high variance between them and when I’m saying high variance – it’s more like huge variance.
A good example is America’s most valuable automobile company – Tesla.
MSCI ranks it at the top of the car industry for sustainability, whereas FTSE ranks it as the worst car producer globally.
You read it right.
Tesla is both the best and the worst.
One rating agency claims “It’s the best” while another is putting it in last place. The discrepancy reflects the fact that MSCI judges Tesla to be almost perfect on carbon emissions because of its clean technology, while FTSE, which evaluates factory emissions, regards the firm as a serious offender. In this post we will see what are the characteristics of this challenge and how ESGgo platform can help to address them.Continue reading