In Chapter 7, the OTM emphasizes the lack of universal ESG reporting standards and the interpretive nature of ESG analysis:

“There isno single global consensuson what constitutes comprehensive ESG disclosure. Analysts must therefore apply professional judgment, making ESG analysisinherently subjective.”

This confirmsStatement 2as correct, whileStatement 1is explicitly refuted. The OTM further explains that even when frameworks like GRI, SASB, and TCFD are applied, analysts often diverge in weighting or interpretation, reinforcing subjectivity as a defining characteristic of ESG evaluation.

Thus, the verified correct choice isB — Statement 2 only, accurately reflecting the current state of ESG disclosure and assessment practices.

????Reference:2021-Final-Book.pdf, Chapter 7 — ESG Analysis, Valuation, and Integration (Challenges in ESG Analysis section).