Inside the ESG ratings: (Dis)agreement and performance. (1st September 2021)
- Record Type:
- Journal Article
- Title:
- Inside the ESG ratings: (Dis)agreement and performance. (1st September 2021)
- Main Title:
- Inside the ESG ratings: (Dis)agreement and performance
- Authors:
- Billio, Monica
Costola, Michele
Hristova, Iva
Latino, Carmelo
Pelizzon, Loriana - Other Names:
- Engle Robert guestEditor.
Brogi Marina guestEditor.
Cucari Nicola guestEditor.
Lagasio Valentina guestEditor. - Abstract:
- Abstract: We analyze the ESG rating criteria used by prominent agencies and show that there is a lack of a commonality in the definition of ESG (i) characteristics, (ii) attributes and (iii) standards in defining E, S and G components. We provide evidence that heterogeneity in rating criteria can lead agencies to have opposite opinions on the same evaluated companies and that agreement across those providers is substantially low. Those alternative definitions of ESG also affect sustainable investments leading to the identification of different investment universes and consequently to the creation of different benchmarks. This implies that in the asset management industry it is extremely difficult to measure the ability of a fund manager if financial performances are strongly conditioned by the chosen ESG benchmark. Finally, we find that the disagreement in the scores provided by the rating agencies disperses the effect of preferences of ESG investors on asset prices, to the point that even when there is agreement, it has no impact on financial performances.
- Is Part Of:
- Corporate social responsibility and environmental management. Volume 28:Number 5(2021)
- Journal:
- Corporate social responsibility and environmental management
- Issue:
- Volume 28:Number 5(2021)
- Issue Display:
- Volume 28, Issue 5 (2021)
- Year:
- 2021
- Volume:
- 28
- Issue:
- 5
- Issue Sort Value:
- 2021-0028-0005-0000
- Page Start:
- 1426
- Page End:
- 1445
- Publication Date:
- 2021-09-01
- Subjects:
- Corporate Social Responsibility -- ESG rating agencies -- sustainable investments
Environmental management -- Periodicals
Environmental auditing -- Periodicals
658.408 - Journal URLs:
- http://onlinelibrary.wiley.com/ ↗
- DOI:
- 10.1002/csr.2177 ↗
- Languages:
- English
- ISSNs:
- 1535-3958
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3472.093215
British Library DSC - BLDSS-3PM
British Library STI - ELD Digital store - Ingest File:
- 27003.xml