Understanding ESG rating divergence: a systematic review and research agenda

Key Points

• ESG rating divergence affects investment decisions, and understanding this issue is critical for responsible investment practices.
• The analysis of over 200 sources reveals significant discrepancies in ESG performance metrics across different rating agencies.
• Systematic review approach highlights existing literature on ESG ratings, emphasizing gaps and inconsistencies in the current understanding.
• Calls for further research into the causes of ESG rating divergence and its implications for sustainability in investment strategies.