MSCI BlogWould Integrating ESG in Chinese Equities Have Worked?
ESG ratings have reflected financial risk and returns in developed-market and emerging-market equities. But was this true in China, where ESG considerations are still in their infancy?
MSCI BlogESG Ratings: How the Weighting Scheme Affected Performance
Our recent research suggests that environmental and social issues were more industry specific and tended to show up in financial measures over a longer time frame compared to governance issues. How can E, S and G issues be combined?
MSCI BlogWhich ESG Issues Mattered Most? Defining Event and Erosion Risks
Very different ESG issues can be material for different industries. Our research suggests that risks can be divided into two main types: “event” risks and “erosion” risks to companies’ long-term competitiveness. Which ones mattered most for E, S and G?
MSCI BlogIs ESG All About the ‘G’? That Depends on Your Time Horizon.
The conventional wisdom has it that governance is the most dominant of the three E, S and G pillars. But our analysis finds different results when looking at contribution to performance over different time horizons.
Research PaperDeconstructing ESG Ratings Performance: Risk and Return for E, S And G by Time Horizon, Sector and Weighting
How are environmental, social and governance (ESG) ratings constructed? Which indicators are the most important in assessing ESG characteristics? Does the answer vary by sector? This foundational paper examines the impact on financial performance of two types of ESG indicators: the individual E, S and G pillars scores and the underlying ESG Key Issue scores. They found that these indicators related differently to companies’ financial performance and challenges the conventional wisdom that “G”...