ESG: RIGHT THESIS, WRONG DATA

Jason Saul () and Phyllis Kurlander Costanza ()
Additional contact information
Jason Saul: Center for Impact Sciences, Harris School of Public Policy, University of Chicago, http://impactgenome.org
Phyllis Kurlander Costanza: OutcomesX

Journal of Financial Transformation, 2022, vol. 56, 79-84

Abstract: In this article, we argue that there is a need to move away from the outdated ESG regime that focuses on external risks for a corporation to one that addresses intrinsic issues that can have positive commercial and societal impacts. The current ESG inputs reflect administrative data points or checklists that align with socially responsible standards, policies, and codes of conduct. However, when corporations focus on societal impacts that are intrinsic to their business, ESG can be a powerful predictor of financial return. The future of ESG depends on producing a new generation of ESG 2.0 data that reliably measures the link between societal impacts and corporate intrinsic value. To get there, three key innovations are needed: (1) adoption of a standardized taxonomy of societal impacts, (2) establishment of an ESG 2.0 “intrinsicality” map, and (3) extension of measurement, reporting, and verification (MRV) to “S”.

Keywords: ESG; social impact (search for similar items in EconPapers)
JEL-codes: O31 O35 O38 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:1692

Access Statistics for this article

Journal of Financial Transformation is currently edited by Prof. Shahin Shojai

More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005.
Bibliographic data for series maintained by Prof. Shahin Shojai ( this e-mail address is bad, please contact ).