On April 8, 2026, we continued our monthly online seminar series "Asset Allocation and Asset Pricing under Regulatory Uncertainty" with an engaging session on ESG ratings and current project developments. Two presentations offered both methodological depth and a forward-looking perspective.

Federico Kreilkamp opened with his joint work with Prof. Antje Mahayni and Bastian Wegner, titled “ESG Ratings – Impact of Data Normalisation on Substitution Rates and Rating Inconsistency”. His talk made clear that data normalization is much more than a technical detail: it shapes how ESG indicators are traded off against each other and can materially affect firm rankings. A particularly interesting takeaway was that rank-based normalization creates non-linear, distribution-dependent trade-offs and can lead to sizable rank reversals compared with z-score normalization, especially when indicators are skewed or heavy-tailed.

Jonathan Loddethen closed the session with a concise and motivating outlook on the next steps of the project. His presentation connected the methodological insights to the road ahead and highlighted the questions and empirical directions that will shape the project’s next phase.

Many thanks to both speakers for their insightful contributions and to everyone who joined the lively discussion. A great seminar and an exciting step forward for the project.