Options
Comparing ESG score weighting approaches and stock performance differentiation
Muck, Matthias; Schmidl, Thomas (2025): Comparing ESG score weighting approaches and stock performance differentiation, in: Bamberg: Otto-Friedrich-Universität, S. 1–9.
Faculty/Chair:
Author:
Publisher Information:
Year of publication:
2025
Pages:
Source/Other editions:
Finance Research Letters, New York: Elsevier Science, 2024, Jg. 67, Nr. B, 105924, S. 1–9, ISSN: 1544-6123
Year of first publication:
2024
Language:
English
Abstract:
This study examines how weighting methodologies in ESG ratings for sustainability categories align with their financial relevance. We analyse Refinitiv’s data-driven weights against equal weights and SASB’s expert-based weights. Our findings show all methods differentiate firms by returns, but equal and SASB weights lead to a stronger effect, particularly after the Paris Agreement. This suggests alternative weighting approaches might better capture the financial significance of ESG categories.
Keywords: ;
ESG ratings
Category weightings
DDC Classification:
RVK Classification:
Peer Reviewed:
Yes:
International Distribution:
Yes:
Open Access Journal:
Yes:
Type:
Article
Activation date:
May 8, 2025
Project(s):
Permalink
https://fis.uni-bamberg.de/handle/uniba/107045