1st Edition
Measuring Good Business Making Sense of Environmental, Social and Governance (ESG) Data
What's a good company? Environmental, Social and Governance (ESG) investing is transforming the world of business and finance. Investors are using data on issues like climate and diversity to enhance returns and make an impact. But with scepticism creeping in, how far can we trust the numbers? Is all this data making a difference to people and planet, and have we actually lost sight of what we are measuring and why? Measuring Good Business explains what we can measure – and calls for honesty about what we can't.
This is the first book to look at the numbers behind the ESG revolution. It sets out a bold blueprint to revolutionise the data based on bottom-up, inclusive metrics, customised data to meet investor needs and impact measures that put sustainability in context. It is essential reading for anyone creating, using or studying ESG and sustainability data. After unpacking what’s going on today, the book focuses on solutions, providing a how-to guide to improve measurement and make sustainable business more impactful. It shows why measurement matters in a highly accessible way through stories and insights based on practical experience.
The book is relevant to a broad readership of data creators (e.g. those working in companies), users (e.g. capital market participants) as well as the large ecosystem of raters, rankers and standard setters across the private, public and non-profit worlds.
Introduction: the ESG revolution 1. Moral merchants 2. ESG World 3. Good measurement 4. Making a difference 5. Solutions for inclusive impact
Biography
Richard Hardyment has spent over 15 years advising and assessing companies on responsible and sustainable business.
“A compelling read for anyone working in sustainable finance. This book challenges the notion of capital markets focused on financial value creation and instead asks: how might we capture human values too?”
Paul Druckman, Chair, World Benchmarking Alliance (WBA); founding CEO of the International Integrated Reporting Council (IIRC)
Anna Biswas, Managing Director, India, Forum for the Future
“Even before the backlash, 'ESG' was riding for a fall, with its flawed methodologies, muddled thinking and overblown claims. This is not just a forensic examination of where it went wrong, going back to the rise of the joint stock corporation and checking in with philosophers, economists and data scientists along the way. This book is fizzing with practical ideas about what we should do next if we want to deploy capital both profitably and sustainably. Highly recommended.”
Mike Tuffrey, cofounder, Corporate Citizenship
Thomas Vergunst, Finance Programme Director, University of Cambridge Institute for Sustainability Leadership
“ESG can trivialise sustainability by assuming that complex issues can be reduced to simple numbers. Measuring Good Business coherently argues for better ways of capturing the world. This is a lively and compelling read that will be of interest to anybody working in the field.”
Dr Mike Tennant, Vice-Dean (Education) and Director of MSc in Environmental Technology, Imperial College, London