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Comparing ESG score weighting approaches and stock performance differentiation
Muck, Matthias; Schmidl, Thomas (2024): Comparing ESG score weighting approaches and stock performance differentiation, in: Finance Research Letters, New York: Elsevier Science, Jg. 67, Nr. B, 105924, S. 1–9, doi: 10.1016/j.frl.2024.105924.
Faculty/Chair:
Author:
Title of the Journal:
Finance Research Letters
ISSN:
1544-6123
Publisher Information:
Year of publication:
2024
Volume:
67
Issue:
B, 105924
Pages:
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:
August 9, 2024
Project(s):
Versioning
Question on publication
Permalink
https://fis.uni-bamberg.de/handle/uniba/97197