Alumni Club Connection

How a Sustainability Index Can Keep Exxon but Drop Tesla – And 3 Ways to Fix ESG Ratings to Meet Investors’ Expectations

A major stock index that tracks sustainable investments dropped electric vehicle-maker Tesla from its list in May 2022 – but it kept oil giant ExxonMobil. That move by the S&P 500 ESG Index has set off a roiling debate over the value of ESG ratings. ESG stands for environmental, social, and governance, and ESG ratings are meant to gauge companies’ performance in those areas. About one-third of all investments under management use ESG criteria, yet many environmental problems continue to worsen. Tesla CEO Elon Musk called the ratings “a scam,” and the U.S. Securities and Exchange Commission proposed new disclosure rules for funds that market themselves as ESG-focused. The Conversation asked Tom Lyon, a business economics professor at the University of Michigan who studies sustainable investing, to explain what happened and how ESG ratings could be improved to better reflect investors’ expectations.

Q&A: Reflections from Michigan Ross AABA Members For Asian American and Pacific Islander Heritage Month

As the United States recognizes Asian American and Pacific Islander Heritage Month, the Ross School of Business is committed to centering the voices of AAPI members of the Michigan Ross community and supporting them, especially as a rise in anti-Asian hate crimes persists across the country.

Annual DEI Research and Teaching Awards Highlight Important Work by Michigan Ross Faculty and Students

The range of scholarship on issues of diversity, equity, and inclusion being conducted at the Ross School of Business was recently showcased at the DEI Research and Teaching Awards ceremony.

New Online Tool Measures Firms’ Exposure to Severe Weather Events

A Ross School of Business professor and his former PhD student have teamed up to create a groundbreaking way to measure a company’s susceptibility to extreme weather.