Type of investment strategy, which takes social, environmental, and governance concerns into account in investment decisions aiming for a more sustainable world.
Published in Chapter:
Corporate Sustainability: The Use of ESG Scores in Finance Research
Naime Usul (Çankaya University, Turkey & Yıldırım Beyazıt University, Turkey) and Işıl Sevilay Yılmaz (TED University, Turkey)
Copyright: © 2023
|Pages: 23
DOI: 10.4018/978-1-6684-7422-8.ch001
Abstract
This chapter presents an overview of sustainable finance literature focusing on studies using environmental, social and governance (ESG) practices, and conducts a descriptive and comparative analysis of the Refinitiv ESG database worldwide. With increasing interest in ESG investing, it is common to integrate ESG factors into portfolio decisions. The authors first address the relevant literature to set the background for further studies. The chapter documents an increasing trend in ESG reporting and points out differences in ESG scores in terms of development level, region, industry, and legal origin for the period 2002-2019. Theoretical models and empirical tests, which integrate ESG factors into corporate performance, can only be established by a better understanding of ESG databases. Therefore, further research in the Refinitiv ESG database, as well as other ESG databases, is significant. This chapter contributes to this stream of research by explaining the Refinitiv ESG database with descriptive and comparative analysis, paving the way for new research on the subject.