2021-05-13 00:00:00, Charles Radclyffe, Forbes
Content Categorization
Word Count:
1120
Words/Sentence:
27
Reading Time:
7.47 min
Reading Quality:
Adept
Readability:
13th to 15th
As ESG reporting and disclosure requirements are becoming mandatory in the EU and other jurisdictions, CEOs and Investor Relations professionals are falling over themselves to ensure they are reporting on the right metrics and those reports have the right 'optics'.
How your social credit score is created is something of a black-box (much as the case with ESG), and rumours that it can be effected by certain innocuous behaviours are likely to create the type of self-sensorship that we in the west find so abhorant to our value of personal freedom.
(Photo illustration by Chesnot/)
While the battle for the moral high-ground continues, what this saga proves is that ESG is fast becoming the equivalent of a social credit scheme for corporates.
The crypto markets are still too volatile to be a credible capital market alternative – and so faced with the choice, ESG or crypto – ESG has (for now) been the victor.
Some ESG ratings and research companies also look at social media and news coverage of the companies they evaluate in order to ascertain whether the sentiment concerning an organisation's animal welfare, human rights, or environmental credentials are up to scratch.
Keywords
social credit, Business Intelligence, Tesla, elon musk, ESG, Chinese
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