In the Harvard Law School Forum on Corporate Governance, Dan Romito highlights a sector bias in ESG scoring, with energy companies getting fewer chances to demonstrate their sustainability efforts. Romito proposes the "Technergy" approach that combines technology and energy to address this issue. The report argues that rating agencies should consider the impact of digitalization, AI, and big data on all sectors when evaluating environmental impact. It also contends that existing frameworks do not adequately account for "hybrid" designations such as the energy-technology dynamic proposed in the report.
Access the report to learn more about these issues and the key factors that companies must consider in order to proactively control the narrative when developing and communicating ESG-related disclosures.