Dissecting the ESG ratings: Does one size fit all?

Monica Billio, Aoife Claire Fitzpatrick, Carmelo Latino and Loriana Pelizzon

Economics Letters, 2025, vol. 256, issue C

Abstract: In this study, we unpack the ESG ratings of three prominent agencies in Europe and find that (i) each E, S, and G pillar contributes differently to the overall ESG score, (ii) there is a low co-movement between the three E, S, G pillars and (iii) there are specific ESG Key Performance Indicators (KPIs) that are driving these ratings more than others.

Keywords: ESG investing; ESG ratings; Asset allocation; Portfolio management; Sustainable finance (search for similar items in EconPapers)
JEL-codes: G11 G24 M14 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:256:y:2025:i:c:s0165176525004434

DOI: 10.1016/j.econlet.2025.112606

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