To Incentivize Companies to Address Climate Change, Measure Their Broader Impact

This narrow approach fails to recognize or reward companies for their innovative contributions to climate solutions beyond their immediate emissions, such as developing green products, influencing policy, or investing in sustainable initiatives. To better mobilize businesses as agents of systemic change, new reporting frameworks should be introduced, allowing companies to highlight and be rewarded for their broader societal contributions.

to complain that his electric car company did not have a higher ESG rating. At the time, Tesla had a lower ESG score than fossil fuel companies such as Shell and Exxon. In fairness to the ESG ratings, Tesla had not made enough efforts to clean up its manufacturing emissions.

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