Seven Myths of ESG

In an article entitled “Seven Myths of ESG”, David F. Larcker, Brian Tayan, and Edward M. Watts, at the Stanford Business School’s Corporate Governance Research Initiative note the following seven myths, and cite a number of studies for reference:

  • We Agree on the Purpose of ESG
  • ESG is Value-increasing
  • We Can Tell Whether a Clained ESG Activity is Actually ESG
  • A Company’s ESG Agenda is Well-defined And Board-Driven
  • G (Governance) Belongs in ESG
  • ESG Ratings Accurately Measure ESG Quality
  • Mandatory Disclosure Will Solve the Problem