Disagreement among ESG rating agencies: shall we be worried?

Claude Lopez, Oscar Contreras and Joseph Bendix

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, we show that using a common set of variables would partially resolve inconsistencies and the lack of comparability across rating providers that often confuse investors. Furthermore, we dissociate the impact of the rating agencies’ different focus on “E”, “S” or “G” from that of using different data. While the former, if properly disclosed, can be useful as it allows investors to choose what rating will be more in line with their preferences, the latter necessarily requires harmonization of the data collected.

Keywords: ESG ratings; machine learning; Environmental; Social governance (search for similar items in EconPapers)
JEL-codes: C14 C5 G10 G11 G14 G30 (search for similar items in EconPapers)
Date: 2020-09-20
New Economics Papers: this item is included in nep-big
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https://mpra.ub.uni-muenchen.de/103027/1/MPRA_paper_103027.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/103259/1/MPRA_paper_103259.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:103027

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