Starting ESG Blog

 Today, I will be starting my ESG blog.  Normally, I work with ESG data from Thomson Reuters (ASSET4); however, this data comes with limitations.  I have recently started working with ESG data from Yahoo Finance.  I will be using this data for this blog since Yahoo Finance's data license allows free use of data for research and educational purposes.


The chart below shows the mean Total ESG scores for each industry in the S&P 500. Although there are 500 companies in the S&P 500 only 443 have Total ESG scores.  The ESG scores are static meaning they are updated periodically. The chart represents the data downloaded in January 2022. I should add the lower the ESG score the less ESG risk. Thus, the real estate industry has lower ESG risk than the Oil & Gas production industry.






Comments

Post a Comment

Popular posts from this blog

ESG Data and Firm Enterprise Value

Image
While we have examined the relationship between ESG performance and firm market value, the relationship between enterprise value and ESG performance was not explored.  The standard hypothesis is that the relationship between firm market value and enterprise value is highly correlated.  Although the difference between enterprise value and firm value is the market value of debt, since debt is well managed by firms, debt shouldn't impact the relationship. Below are the charts exploring the relationship between enterprise value, firm market value, and ESG performance.
Read more