12 Jul '11, 3pm

Many Corporate Sustainability Ratings ‘Not Financially Viable’

In the future, corporate sustainability ratings need to be financially viable, forward-looking and transparent, according to the fourth and final phase of a research program into such ratings, published by SustainAbility. In the final phase of Rate the Raters, SustainAbility argues that today many ratings are not financially viable and thus cannot invest adequate resources to improve and evolve. Ratings also need to be predictive and forward looking. It is more important to know how a company is positioned to compete in the future rather than how it fared in the past, the white paper argues. And transparency is also key for successful future rating systems, according to the white paper. Those ratings that reveal methodologies and results will build trust and stimulate further demand, Rate the Raters says. While the number of ratings may continue to rise in the near term, S...

Full article: http://www.environmentalleader.com/2011/07/12/many-corpor...

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