Taxonomy and Indicators for ESG Investments

Francesco Sica, Francesco Tajani (), Paz Sáez-Pérez Mª and José Marín-Nicolás
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Francesco Sica: Department of Architecture and Design, Sapienza University of Rome, 00185 Roma, Italy
Francesco Tajani: Department of Architecture and Design, Sapienza University of Rome, 00185 Roma, Italy
Paz Sáez-Pérez Mª: Building Constructions Department, Advanced Technical School for Building Engineering, University of Granada, 18071 Granada, Spain
José Marín-Nicolás: International School for Postgraduate Studies, University of Granada, 18071 Granada, Spain

Sustainability, 2023, vol. 15, issue 22, 1-15

Abstract: Instead of the well-known three-pillar model of economic, social, and environmental sustainability, the shift in valuation paradigm to the sustainable realm needs a fundamental methodological and operational modification, with a focus on determining and describing metrics, criteria, and performance indicators that can be used to support Environmental, Social, Governance (ESG)-based valuation practices. As of now (2023), there is significant language and semantic heterogeneity in the indicators, standards, and operational methods to be used while conducting ESG assessments and analyses. The primary objective of this contribution is to analyze the current ESG criteria/indicators that can be found in relevant scientific publications. A scoping review of the recent ESG literature (2015–2023) as well as a content study of the reports from the most influential worldwide rating agencies—which are now utilized as models in the usage of criteria, indicators, and ESG metric applications—have been both carried out. A total of 182 indicators (78 environmental, 64 social, and 40 governance) have been gathered as a result of the investigation. In the endeavor to design and apply ESG-focused valuation and analytical practice, sets of Key Performance Indicators for the three dimensions have been found using cluster analysis and text mining, and a reference taxonomy has been provided based on them.

Keywords: ESG investments; taxonomy; indicator sets; scoping analysis; cluster analysis; text mining (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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