Behind ESG Ratings: Unpacking sustainability metrics

Description

This report explains how investors increasingly use ESG (environmental, social, and governance) data and ratings to guide investment decisions, and why the quality and comparability of that data matters. As sustainable finance grows, investors rely on ESG metrics to understand risks, impacts, and opportunities, but inconsistent or unclear data can make it harder to compare companies and direct capital toward genuinely sustainable activities.

The report reviews how leading ESG data and rating providers measure sustainability performance and assesses how closely their metrics align with the OECD Guidelines for Multinational Enterprises. It is intended to help policymakers, investors, and companies better understand ESG data, improve transparency, and support more informed, responsible investment decisions.