The MIT Sloan Sustainability Initiative, a program within the MIT Sloan School of Management, has launched the Aggregate Confusion Project in an effort to address measurement challenges for ESG data.
The project has four key goals:
Reduce the level of noise in measuring specific ESG categories such as labor treatment, carbon emissions and product safety
Understand the effect of ESG-driven investment flows on stock price and firm behavior
Develop smarter ways to aggregate ESG factors into composite indices
Reliably assess investor preferences to enable ESG indices to be more customized and attuned to investors' values
The founding member of the project is the Massachusetts Pension Reserves Investment Management (Mass PRIM) board, which manages the $75 billion Pension Reserves Investment Trust (PRIT) Fund. This pooled investment fund invests the pension assets on behalf of the Massachusetts Teachers', the State Employees' Re