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ESG looks backward at impact. R* looks forward at regenerative capacity. One scores past behavior; the other predicts institutional longevity.
Score past environmental, social, and governance practices. Backward-looking, easily gamed, inconsistent across agencies. Measures activities, not capacity.
Measures regenerative capacity—structural ability to persist and grow through cycles. Forward-looking, structurally grounded, predicts institutional longevity.
| Dimension | ESG | R* Index |
|---|---|---|
| Time orientation | Backward-looking (past performance) | Forward-looking (regenerative capacity) |
| What it measures | Environmental, Social, Governance practices | Ability to persist and regenerate across cycles |
| Predictive power | Limited (scores past behavior) | High (predicts institutional longevity) |
| Gaming vulnerability | High (optimized for scores) | Low (measures structural capacity) |
| Time horizon | Annual reporting cycles | Multi-generational persistence |
ESG metrics look backward at what organizations did, not forward at what they're capable of. They're easily gamed, inconsistent across rating agencies, and focus on activities rather than outcomes. A high ESG score doesn't predict institutional survival or regenerative capacity.
R* (R-star) measures regenerative capacity—an institution's ability to persist and grow stronger through cycles. It looks forward at structural features that enable longevity: capital architecture, learning capacity, authority resilience, and commitment persistence.
Yes, commonly. An organization might score well on ESG (good practices, proper reporting) while having structural fragilities that threaten long-term survival. ESG compliance doesn't guarantee regenerative capacity.