What environmental ratings miss
By: Auden Schendler, Michael Toffel
Contributors: Toffel, Michael W.; Harvard Business School
Series: Working paper / Harvard Business School -- 12-017; Working paper (Harvard Business School) -- 12-017
Publisher: Harvard Business School
Published: 2011
Place of publication: Boston]
Language: eng
Description: Environmental ratings of companies are based on "green" management efforts and the environmental performance of their operations. In this paper, Michael Toffel and Auden Schendler argue that these ratings neglect companies' actions that seek to influence environmental policy, which can have a much broader impact than their internal efforts. As a result, sustainability ratings risk seriously misleading consumers and investors, and can even enable "greenwashing" by allowing corporations to game the system, gaining high rankings for greening their operations despite advocating for less stringent environmental policy. Toffel and Schendler argue that environmental ratings should factor in political contributions, CEO advocacy work, and engagement with non-governmental organizations, among other actions. This would erode the environmental ratings of companies advocating weaker environmental policy, and bolster the ratings of those advocating more stringent environmental policy.
Notes: "September 2011" -- Publisher's website.

Includes bibliographical references.