ESG investing is an investment strategy that incorporates environmental, social, and governance (ESG) information in the investment decision-making process. There is a growing interest in ESG investing, and thus a large and growing empirical literature examining the returns to ESG investing. At the same time, the demand for more and better information about firms’ ESG activities is increasing. In response to this demand, many jurisdictions (e.g., the US Securities and Exchange Commission) are considering ESG reporting mandates to encourage ESG investing by helping the investors smoothly identify firms with better ESG metrics (green firms) from the inferior ones (brown firms).