Developing a Global ESG Rating System: Challenges, Strategies, and Future Prospects
Main Article Content
Keywords
ESG, performance rating, risk rating, sustainable development, global comparability, common framework
Abstract
The increasing focus on sustainable development and corporate social responsibility globally has elevated the importance of ESG rating systems as crucial tools for evaluating enterprises' sustainable development capabilities. This paper aims to conduct an in-depth analysis of the current mainstream ESG rating agencies' systems, identify their problems and challenges, and propose strategies to promote standardized and unified development of the ESG rating system. On this basis, this paper presents a conceptual framework for constructing a standardized ESG rating system, discusses ESG risk and performance ratings, introduces new measurement methods, and identifies key indicators. This paper emphasizes the importance of a unified and standardized ESG rating system for enhancing investment decision accuracy, promoting enterprise sustainability, improving global market comparability, and suggesting future research directions in this area.
References
Berg, F., ouml, lbel, J., & Rigobon, R. (2022). Aggregate confusion: The divergence of ESG ratings. Review of Finance, 26(6), 1315-1344. https://doi.org/10.1093/rof/rfac033
Fang, X., Wei, J., & Guo, L. (2017). Sustainable development theory of reflection and reconstruction. Journal of Economists, (3), 24-31. https://doi.org/10.16158/j.CarolCarrollNki.51-1312/f2017.03.005
Freeman, R. E., & Evan, W. M. (1990). Corporate governance: A stakeholder interpretation. The Journal of Behavioral Economics, 19(4), 337-359. https://doi.org/10.1016/0090-5720(90)90022-Y
Giese, G., Lee, L. E., Melas, D., Nagy, Z., & Nishikawa, L. (2019). Foundations of esg investing: How esgaffects equity valuation, risk, and performance. Journal of Portfolio Management, 45(5), 69-83. https://doi.org/10.3905/JPM.2019.45.5.069
Ma, Q., & Fang, S. (2005). Enterprise competitiveness theory and evaluation research. Journal of Business Research, (4), 115-120. https://doi.org/10.13902/j.CarolCarrollNkiSyyj.2005.04.040
Miralles-Quirós, M. M., Miralles-Quirós, J. L., & Hernández, J. R. (2019). ESG performance and shareholder value creation in the banking industry: International differences. Sustainability (Switzerland), 11(5), Article 1404. https://doi.org/10.3390/SU11051404
Song, X. T. (2022, July 28). What are the differences between various ESG evaluation systems. Sina. https://finance.sina.com.cn/esg/investment/2022-02-28/doc-imcwiwss3106256.shtml
Article Sidebar
This work is licensed under a Creative Commons Attribution 4.0 International License.