Recently, the NexisUni database has added ESG ratings. According to the database:
"ESG stands for Environmental, Social and Corporate Governance. It is an approach to evaluating how well a corporation works towards social goals beyond maximizing profits for shareholders."
ESG ratings have become very important for shareholders because they provide information on the financial risks each ESG factor poses for the company. The ratings are helpful for investors to evaluate potential risks in business performance and to identify possible areas for internal improvement. However, it is essential to note that there can be some inconsistencies in ESG ratings depending on how the information was collected and evaluated. Also, when looking at the individual factors of ESG, environmental, social, and governance, it is important to note that different factors may be important to different companies. For example, a company like Tesla may care more about its environmental impact, therefore rating higher in the environmental section, and less about its social impact, scoring lower in that category. Shareholders may choose to look at each individual category and then the total ESG rating as a whole. In all, the higher the rating the better the company is performing related to each of these factors.
For more information and how to access the ratings go to:
https://lexisnexis.custhelp.com/app/answers/answer_view/a_id/1125132/~/csrhub-esg-ratings-on-nexis
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