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The interest rate companies with weak credit ratings pay has dropped from a whopping 21.5% a year ago to a recent 9.1% and the S&P 500s earnings yield hovers above 4%.
To achieve improved risk-adjusted returns, ESG ratings, rankings, and indexes must rate companies on material factors, and be transparent about what those factors are.
The interest rate companies pay has also fallen.But those terms have not dampened enthusiasm.
So despite today's relatively high unemployment rate, companies have to worry about finding enough workers in the future.
Mr. Dickinson counters that the project has added evaluations that rate companies by concrete steps taken to cut their emissions.
For hiring to increase enough to rapidly lower the unemployment rate, companies must gain more confidence in the economy.
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And at its core, Procter & Gamble is a single-digit growth rate company.
"We did not have a 'substandard' plan with a second rate company," Perdue wrote.
Bad rating companies over-rated securities.
Transparent comparable and material factors will drive continuous improvement across the three critical players in the ESG landscape: rated companies, rating agencies, and ratings users.
Fitch Ratings, one of the nation's three big rating companies, sounded doubtful.
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Justyna Jupowicz-Kozak
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