Environmental, Social, and Governance (ESG) ratings have clearly caught the market’s attention. In 2021, over $120 billion poured into sustainable investments, more than double the $51 billion logged for 2020. When it comes to climate change, however, ESG ratings are an imperfect vehicle to convey investor-relevant information. Instead, we need to assign companies a stand-alone rating focused on climate risk. Such a climate-specific rating can distill complex information regarding a company’s carbon footprint and climate risk into an intuitive, user-friendly format, while avoiding the flaws that currently mar ESG ratings.