About the ESG-GED Index

Investing according to ESG criteria has gained considerable momentum in recent years. Most existing metrics focus on physical emissions rather than the monetary damage of emissions. If the goal of ESG indices is to align the behavior of financial market participants with more socially beneficial environmental outcomes, relying on monetary damage is essential. Monetization facilitates aggregation of the impacts from pollution emissions across pollutants, emission source locations, and across time.

The GED-ESG Index uses rigorous quantitative modeling techniques to compute the monetary damages from five local air pollutants and three primary greenhouse gases (GHGs) produced by companies on the S&P 500. Companies are scored according to their contribution to pollution damage, relative to company value.

Project Leadership

This project is led by Nicholas Muller, Lester and Judith Lave Professor of Economics, Engineering, and Public Policy, at Carnegie Mellon University. Muller holds positions in both the Tepper School of Business and the Department of Engineering and Public Policy.

Project Supporters

This research was made possible by funding provided by alumni of the Tepper School of Business at Carnegie Mellon University and the Heinz Endowments. Muller’s effort was also supported by the Lester and Judith Lave Professorship.

Current Working Paper

Indices