We examine the current landscape of environmental, social, and governance (ESG) investing by focusing on environment. We analyze the discrepancies in ESG scoring methodologies among different rating agencies and demonstrate how these inconsistencies can lead to distorted investment decisions. To address this issue, we propose a unified approach based on a net carbon tax, which incorporates both carbon emissions and companies’ green efforts. We address how carbon trading, carbon pricing and green bonds differ across various countries. This can lead to distortions in production location because global companies relocate their production units based on tax rates and various fees.