Deconstructing ESG Ratings Performance

The global growth in ESG investing has spawned a dizzying array of research investigating the potential financial benefits of ESG.  Many of these studies point to some outperformance but the results can differ quite a lot depending on which ESG methodologies were used. 

The relationships between ESG and performance in any study is difficult to generalize without a precise understanding of the underlying components of E, S and G, and how you put those components together.  

Watch this session, which explores the findings of a new paper ‘Deconstructing ESG Ratings Performance’ which utilizes 13 years of MSCI ESG Ratings live history to examine risk and return for E, S and G by time horizon, sector and weighting.

Agenda topics:

• Foundations of ESG: background and what’s new
• E, S and G performance: What impact have E, S and G scores had on financial valuations?  Is it just a ‘G’ thing?
• Going granular on ESG: How have ESG Key Issue scores, such as carbon footprint, health and safety or corporate governance issues, affected performance over various time periods and equity universes?
• Sectoral differences and weighting: How ESG ratings construction can have a significant impact on their usefulness