It is no doubt that the discussion about ESG as a factor in investing has grown exponentially in the last few years. This paper will explore the shortcomings of voluntary ESG reporting mechanisms. It will further argue that private ordering alone cannot be trusted, as the goals of individuals who are in charge of such private reporting may differ from the sustainable
development goals that the market is in dire need of today. A balanced approach of private regulations in the market backed by scientific and robust State regulations are the best way to ensure that quantifiable targets are achieved in the field of sustainable finance.