19 August 2022
ESG rating often turns out to be an empty promise

Companies do often not live up to their sustainable hallmark

The ESG rating, the hallmark that indicates that companies are conducting business in a socially responsible way, often appears to be a promise that only exists on paper. While large investors, such as Dutch pension funds, do use it to make responsible investments. This is what PhD student Bram van der Kroft and professor Dennis Bams, both connected to the Open University and Maastricht University, write on Thursday in economics journal ESB.