Where ESG Ratings Fail: The Case for New Metrics

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Institutional Investor

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Today, investors are able to identify “good” companies and “profitable” companies but not companies doing the most good most profitably which is a missed opportunity for business, investors, and society.

Written by FSG’s co-founder Mark Kramer, along with Nina Jais, Erin Sullivan, Carina Wendel and Kerry Rodriguez of FSG, and Carlo Papa, Carlo Napoli, and Filippo Forti of Enel Foundation this article on Institutional Investor introduces hybrid metrics as a new approach that combines companies’ social and environmental impact with standard measures of financial performance, making the connection between the two explicit.

This article derives from the report “Hybrid Metrics: Connecting Shared Value to Shareholder Value”