Bridging the ESG Data Gap: Transparent Metrics and Rankings for Emerging Financial Markets

Azhar Rim Qachach (), Badr El Mahrad (), Omar Kharbouch, Aniss Moumen, Sara El Aoufi, Manal El Gueddari and Soukaina Abdallah-Ou-Moussa
Additional contact information
Azhar Rim Qachach: Faculty of Economics and Management, Ibn Tofail University of Kenitra, Kenitra BP242, Morocco
Badr El Mahrad: Centro de Investigação Marinha e Ambiental, FCT-Gambelas Campus, University of Algarve, 8005-139 Faro, Portugal
Omar Kharbouch: Faculty of Economics and Management, Ibn Tofail University of Kenitra, Kenitra BP242, Morocco
Aniss Moumen: National School of Applied Sciences of Kenitra, University of Ibn Tofail, Kenitra 14000, Morocco
Sara El Aoufi: Faculty of Economics and Management, Ibn Tofail University of Kenitra, Kenitra BP242, Morocco
Manal El Gueddari: Faculty of Economics and Management, Ibn Tofail University of Kenitra, Kenitra BP242, Morocco
Soukaina Abdallah-Ou-Moussa: Faculty of Economics and Management, Ibn Tofail University of Kenitra, Kenitra BP242, Morocco

IJFS, 2025, vol. 13, issue 4, 1-19

Abstract: Environmental, Social, and Governance (ESG) performance has become a pivotal driver of firm valuation, investment flows, and capital market stability and a critical dimension of corporate sustainability and investor decision-making. Yet, emerging markets face structural barriers to standardized ESG measurement due to limited data availability and inconsistent disclosures. This study addresses this gap by developing a simplified, transparent and indicator-based ESG assessment model tailored to the Moroccan capital market using publicly available data from 20 companies listed in the MASI ESG Index on the Casablanca Stock Exchange. The framework evaluates 12 equally weighted indicators across environmental, social, and governance pillars, and employs the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), a Multi-Criteria Decision-Making (MCDM) method, to generate firm-level ESG scores and rankings. In addition to equal-weighted rankings, the model was stress-tested using entropy-based and expert-informed weights. Results reveal a wide disparity in ESG maturity: while environmental reporting is relatively advanced, social and governance disclosures lag behind. Top-ranking firms align closely with international frameworks such as GRI, whereas others lack fundamental transparency. By offering a replicable, low-data ESG scoring method applicable to other emerging markets, this research provides actionable insights for investors, regulators, and corporate leaders. The findings contribute to the financial literature on ESG integration, support the design of sustainable investment strategies, and advance policy efforts to strengthen capital market resilience across the MENA region.

Keywords: ESG performance; emerging markets; Morocco; MASI ESG index; multi-criteria decision making (MCDM); TOPSIS; corporate sustainability; non-financial disclosure (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7072/13/4/198/pdf (application/pdf)
https://www.mdpi.com/2227-7072/13/4/198/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:13:y:2025:i:4:p:198-:d:1775411

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().