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Dissecting the ESG ratings: Does one size fit all?

Author

Listed:
  • Billio, Monica
  • Fitzpatrick, Aoife Claire
  • Latino, Carmelo
  • Pelizzon, Loriana

Abstract

In this study, we unpack the ESG ratings of three prominent agencies in Europe and find that (i) each E, S, and G pillar contributes differently to the overall ESG score, (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.

Suggested Citation

  • Billio, Monica & Fitzpatrick, Aoife Claire & Latino, Carmelo & Pelizzon, Loriana, 2025. "Dissecting the ESG ratings: Does one size fit all?," Economics Letters, Elsevier, vol. 256(C).
    • Handle: RePEc:eee:ecolet:v:256:y:2025:i:c:s0165176525004434
    DOI: 10.1016/j.econlet.2025.112606
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    References listed on IDEAS

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    1. Ventura Charlin & Arturo Cifuentes & Jorge Alfaro, 2024. "ESG ratings: an industry in need of a major overhaul," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 14(4), pages 1037-1055, October.
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    5. Monica Billio & Michele Costola & Iva Hristova & Carmelo Latino & Loriana Pelizzon, 2021. "Inside the ESG ratings: (Dis)agreement and performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1426-1445, September.
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    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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