ESG Debt Scores Are Inconsistent, Unreliable, JPMorgan Says – Bloomberg Law

Investors wanting to evaluate bonds on environmental, social and governance criteria in the rapidly growing sustainable finance market have a problem: The rating system isn’t reliable.

That’s according to a new report from JPMorgan Chase & Co. researchers, who found very little consistency among different ESG score providers. A lack of standardized data on basic issues contributes to the difficulty.

“Until the market agrees on a uniform set of consistent disclosures akin to GAAP accounting standards, it is hard to see how ESG ratings can become more objective,” JPMorgan strategists led by Nathaniel Rosenbaum wrote in a report Thursday.

JPMorgan’s …