Transparency Criteria for the Construction of Corporate Sustainability Ratings : An Analysis Based on the Composite Indicator Framework
Year: 2014
Type: dissertation
Abstract: Corporate sustainability ratings or sustainability ratings (SRs) are applied to integrate sustainability\nin investment decisions. In order to evaluate the contribution to tackling sustainability\nchallenges and in order to apply them, agencies need to disclose information about the\nconstruction of the SR. This thesis follows four steps to present transparency criteria for the\nconstruction of SRs. First, I show that the composite indicator framework is applicable to\nSRs. Second, I use this framework to find out how a one-dimensional measure, which represents\na multi-dimensional phenomenon like corporate sustainability, is constructed. This\nidentifies the choices that agencies have when constructing an SR. Third, I use these findings\nto derive 14 elements that need to be described in order to enable the interpretation of an SR.\nThese elements constitute the transparency criteria. Fourth, the application of the transparency\ncriteria is demonstrated by an empirical review of information that is published during the\naccreditation by the quality standard Arista 3.0. The last part finds that the accredited agencies\ndo not publish sufficient information to enable the SRs’ interpretation and that the Arista\n3.0 does not achieve the targeted transparency. I conclude that the transparency criteria are\nuseful to analyze whether disclosed information is sufficient to enable the interpretation of\nSRs.
Author: Yannic Steffan
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
Funder: Universität Mannheim
OpenAlex ID: W2499584346