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Improving ESG Scores with Sustainability Concepts

Author

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  • Alexandre Clément

    (Department of Marketing, University of Quebec at Montreal (ESG-UQAM), 315 Rue Sainte-Catherine Est, Montreal, QC H2X 3X2, Canada
    Observatoire de la Philanthropie, Office: DS-2835, 315 Rue Sainte-Catherine Est, Montreal, QC H2X 3X2, Canada)

  • Élisabeth Robinot

    (Department of Marketing, University of Quebec at Montreal (ESG-UQAM), 315 Rue Sainte-Catherine Est, Montreal, QC H2X 3X2, Canada
    Observatoire de la Philanthropie, Office: DS-2835, 315 Rue Sainte-Catherine Est, Montreal, QC H2X 3X2, Canada)

  • Léo Trespeuch

    (Observatoire de la Philanthropie, Office: DS-2835, 315 Rue Sainte-Catherine Est, Montreal, QC H2X 3X2, Canada
    Department of Marketing, École de Gestion de l’Université du Québec à Trois-Rivières (EGUQTR), 3351, Boulevard des Forges, Trois-Rivières, QC G9A 5H7, Canada)

Abstract

ESG (environment, social, and governance) scores are becoming mainstream proxies for evaluating sustainability in organizations. In past years, scholars and managers used ESG scores to express the sustainable development of an organization and other types of sustainability. Meanwhile, increasing literature has shown that ESG scores do not measure sustainability in terms of sustainable development. The main reason ESG scores fail to measure sustainability adequately is that ESG scores are not designed to measure sustainability concepts, such as temporality, impact, resources management, and interconnectivity. Furthermore, ESG scores apply materiality concepts, but what they measure is not always quantifiable, and most agencies that produce ESG scores lack transparency. This research reviewed the challenges and issues associated with ESG scores regarding sustainability representation. Then, based on the sustainability literature, different themes and concepts that would add more sustainability consideration to an ideal ESG score are presented. Since ESG scores are increasingly popular, this paper presents concepts and ideas that would help ESG score agencies include more sustainability principles in their methodologies while redefining the expectations of scholars using them.

Suggested Citation

  • Alexandre Clément & Élisabeth Robinot & Léo Trespeuch, 2022. "Improving ESG Scores with Sustainability Concepts," Sustainability, MDPI, vol. 14(20), pages 1-15, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13154-:d:941468
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    References listed on IDEAS

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    Cited by:

    1. Xin Su & Shengwen Wang & Feifei Li, 2023. "The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    2. Trespeuch Léo & Robinot Élisabeth, 2023. "Exploring the Impact of Corporate Philanthropy on Brand Authenticity in the Luxury Industry: Scale Development and Empirical Studies," Sustainability, MDPI, vol. 15(16), pages 1-21, August.
    3. Leogrande, Angelo & Costantiello, Alberto, 2023. "The Impact of Government Expenditure on Education in the ESG Models at World Level," MPRA Paper 117216, University Library of Munich, Germany.

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