MLL Legal AG
Climate Impact & Sustainability Data (2024)
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Climate Goals & Targets
Environmental Challenges
- Lack of transparency and comparability in ESG ratings due to different metrics and models used by rating agencies.
- Mixing of risk factors for financial stability and impact factors for social and environmental effects in sustainability measurements.
- Significant variation in ESG ratings from different agencies for the same company.
- Hidden influence of tax aspects in ESG ratings, with varying weightings and indicators across agencies.
Mitigation Strategies
- Investors should use ESG ratings as a starting point only, critically examining the rating models and underlying data.
- Understanding the context and limitations of ESG ratings is crucial for informed investment decisions.