• Energy Research

Environmental, social, and governance (ESG) rating agencies, acting as relevant financial market actors, should take a stand on working towards achieving a more sustainable development. In this context, the objective of this paper is, on the one hand, to understand how criteria used by ESG rating agencies in their assessment processes have evolved over the last ten years and, on the other hand, to analyze whether ESG rating agencies are contributing to fostering sustainable development by the inclusion of sustainability principles into their assessment processes and practices according to the ESG criteria. This research is based on a comparative descriptive analysis of the public information provided by the most representative ESG rating and information provider agencies in the financial market in two periods: 2008 and 2018. The findings show that ESG rating agencies have integrated new criteria into their assessment models to measure corporate performance more accurately and robustly in order to respond to new global challenges. However, a deep analysis of the criteria also shows that ESG rating agencies do not fully integrate sustainability principles into the corporate sustainability assessment process.

The integration of sustainability principles into the assessment of companies along the supply chains is a growing research area. However, there is an absence of a generally accepted method to evaluate corporate sustainability performance (CSP), and the models and frameworks proposed by the literature present various important challenges to be addressed. A systematic literature review on the supply chain at the corporate level has been conducted, analyzing the main strengths and gaps in the sustainability assessment literature. Therefore, this paper aims to contribute to the development of this field by proposing an assessment framework a leading company can adopt to expand sustainability principles to the rest of the members of the supply chain. This proposal is based on best practices and integrates and shares efforts with key initiatives (for instance, the Organizational Environmental Footprint from the European Commission and United Nations Environment Programme and the Society of Environmental Toxicology and Chemistry UNEP/SETAC); moreover, it overcomes important limitations of the current sustainability tools in a supply chain context consistent with the circular economy, the Sustainable Development Goals (SDGs), planetary boundaries, and social foundation requirements. The results obtained create, on the one hand, new opportunities for academics; and, on the other hand, in further research, the use of this framework could be a means of actively engaging companies in their supply chains and of achieving the implementation of practical and comprehensive CSP assessment.

ABSTRACTThe debate surrounding the financial needs of investors and the impact on society of investment is considered to be an important research topic due to the growth of socially responsible financial markets. The main objective of this research is to study society's perception about socially responsible investing (SRI) and to identify investor's preferences regarding environmental, social and governance criteria, their real‐life investment needs and the most relevant sustainable financial products.To examine society's perception of SRI, we conducted a field survey among Spanish investors. The results show that SRI is at an early stage and Spanish investors need more exact information regarding social, environmental, and governance criteria in order to invest in socially responsible companies and products.This paper offers some guidelines that could be used by Spanish institutions, managers and investors and by foreign managers when approaching the Spanish market, in order to promote the growth of socially responsible financial products. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.

Many organizations currently publish sustainability ratings that quantify the sustainability of firms by aggregating scores. These organizations analyze companies in economic, social, environmental and corporate governance terms. However, some of these scores are associated with problems of how positive and negative assessments are offset. This work proposes a methodology for using fuzzy logic in the design of a comprehensive sustainability rating for firms. This technique for measuring sustainability addresses the complexity of the concept and enables the incorporation of expert knowledge into the system of assessment. This approach is applied to organizational information taken from the 2008 Accountability Rating and corrects one of the weaknesses revealed by methodologies based on the aggregation of scores—the offset effect—enabling decision-maker to manage it. This is considered an important research topic because of the growth of social responsible financial markets, and the fact that investors are demanding more accurate information.