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Record W4408617976 · doi:10.1080/20430795.2025.2479538

Towards a better understanding of ESG ratings

2025· article· en· W4408617976 on OpenAlexaff
Robert Stewart

Bibliographic record

VenueJournal of Sustainable Finance & Investment · 2025
Typearticle
Languageen
FieldBusiness, Management and Accounting
TopicEnvironmental Sustainability in Business
Canadian institutionsYork University
Fundersnot available
KeywordsPsychologyBusiness

Abstract

fetched live from OpenAlex

ESG raters provide substantially different ratings for the same companies. But what do these ratings measure? Applying content analysis to the methodology documents of 13 different ESG raters, I analyze the definitions of ESG ratings to determine what is being measured and inspect the pillars used to frame ESG ratings to determine, conceptually, how these ESG ratings are operationalized. The results indicate that ESG raters define different performance outcomes and deconstruct ESG arbitrarily. Some raters define a risk exposure, some define a performance management outcome, and others conflate risk and performance management concepts. I propose a categorization to classify ESG ratings based on their definitions. I further show that raters delineate ESG arbitrarily, leading to further disagreement in the operationalization of ESG ratings. These results show that ESG ratings are not conceptually designed to be comparable. Users of ESG ratings must make selections based on appropriate selection criteria.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: Theoretical or conceptual
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.347
Threshold uncertainty score0.849

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.001
Science and technology studies0.0000.000
Scholarly communication0.0000.002
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.013
GPT teacher head0.223
Teacher spread0.210 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations9
Published2025
Admission routes1
Has abstractyes

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