TY  - UNPD
A1  - Billio, Monica
A1  - Fitzpatrick, Aoife Claire
A1  - Latino, Carmelo
A1  - Pelizzon, Loriana
T1  - Unpacking the ESG ratings: does one size fit all?
N2  - In this study, we unpack the ESG ratings of four prominent agencies in Europe and find that (i) each single E, S, G pillar explains the overall ESG score differently,(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. We argue that such discrepancies might mislead firms about their actual ESG status, potentially leading to cherry-picking areas for improvement, thus raising questions about the accuracy and effectiveness of ESG evaluations in both explaining sustainability and driving capital toward sustainable companies.
T3  - SAFE working paper - 415 
KW  - ESG Investing
KW  - ESG ratings
KW  - Asset Allocation
KW  - Portfolio Management
KW  - Sustainable Finance
Y1  - 2024
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/71560
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-715606
UR  - https://ssrn.com/abstract=4742445
N1  - Authors aknowledge funding from European Investment Fund in the framework of the EIBURS project ESG-credit.eu and funding by the European Union - NextGenerationEU, in the framework of the GRINS - Growing Resilient, INclusive and Sustainable project (GRINS PE00000018 – CUP H73C22000930001). We gratefully acknowledge research support from the Leibniz Institute for Financial Research SAFE. The usual disclaimer applies.
PB  - SAFE
CY  - Frankfurt am Main
ER  -