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ESG rating agencies: navigating credibility and impact

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on IR Magazine or enjoy below:

🗞️ Driving the news: The ESG Integration Forum – Autumn in London brought together investment community members to discuss evolving ESG priorities
• Key topics included the impact of new global sustainability reporting standards and frameworks, and the role of ESG rating agencies

🔭 The context: The forum addressed challenges in aligning company metrics with various ESG frameworks and rating agencies
• It highlighted the diverse criteria used by these agencies and the importance of companies catering to stakeholders' expectations

🌍 Why it matters for the planet: The discussion underscored the significance of accurate ESG reporting and ratings in driving sustainable practices
• Effective ESG integration is crucial for addressing environmental challenges and promoting responsible business conduct globally

⏭️ What's next: The forum indicated a need for more tailored ESG assessments reflecting individual company operations
 • There's a call for action to regulate ESG ratings providers and address greenwashing concerns, with an emphasis on companies aligning their strategies with genuine ESG goals

💬 One quote: "Rating agencies cannot be the North Star for any of you," said Enrico Filippi from Technogym, emphasizing the importance of companies setting their own ESG strategies and goals

📈 One stat: The forum comes after significant ESG developments in 2023, including the launch of the International Sustainability Standards Board's global sustainability reporting standards (IFRS S1 and S2).

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