To begin with, they are far from transparent and not easy to compare. Since there are not yet widely accepted rules for ESG data computation and disclosure, firms’ non-financial reports do not follow pre-defined standards, and therefore do not lend themselves to the calculation of harmonized indicators and statistics. Moreover, ESG score providers rely on subjective methodologies to select, assess and combine individual indicators.
The path ahead for the economy will depend on the future path of the virus, the degree to which containment measures need to remain in place or be reintroduced, and the immediate and longer-lasting effects on behaviour and economic activity.