GIST Impact wins ESG Data Provider of the Year – EMEA 2024. Learn more!

453837772-science_data_tech-adobestock_216541444
Blog

ESG Ratings vs. ESG Framework: Is Impact Valuation the real path forward?

1 min read

In 2005, ESG was introduced as a framework to measure company performance across Environmental, Social, and Governance pillars – pillars that are inherently linked to impact. Over time, however, ESG has been sidetracked by the rise of subjective ratings that have proven to be inadequate.

To achieve real systems change, we need to recognise that sustainability needs to be translated into financial metrics. This can be done through Impact Valuation, which translates sustainability into the language of finance – a language that drives real decisions for investors and businesses.

Key Takeaways:
– ESG as a Framework: Designed to assess a company’s impact through Environmental, Social, and Governance pillars.
– ESG Ratings: These are not fulfilling their purpose, failing to provide the clarity needed for decision-making.
– Impact Valuation: Translates sustainability data into financial terms, enabling leaders to make decisions that integrate both financial and sustainability metrics.

For a deeper dive into why ESG ratings are falling short and how Impact Valuation is reshaping the future of sustainability, contact us on info@gistimpact.com

Share on LinkedIn

Latest Insights

This website uses cookies. You can read more information in our Privacy Statement or your cookies preferences.
Decline allAccept all
Strictly necessary

Essential for you to browse the website and use its features.

Preferences

Remember choices you have made in the past.

Statistics

Collect information about how you use a website.

Marketing

Track your online activity to help advertisers deliver more relevant advertising.

Decline allAccept all