World Needs Clear Standards for Sustainability Ratings, Leaders Say

Now that businesses worldwide are increasingly addressing sustainability issues in response to public and investor pressure, a clear, simple and commonly accepted set of standards is needed to encourage such disclosures, business leaders attending the 2022 World Economic Forum said.

There is currently no internationally aligned system for reporting on environmental, social and governance (ESG) performance, causing confusion among businesses about what indices and metrics are used to rate their companies for inclusion in investment funds.