ESG ratings and investment efficiency
Abstract. The article presents the assessment of the impact of ESG standards on investment efficiency by analyzing the dynamics of stock indices characterizing the efficiency of securities, both those that meet ESG requirements and those that do not take these conditions into account as a criterion. The position on the greater efficiency of sustainable investing compared to the traditional approach in the medium and long term is substantiated. An analysis of the development trends of the ESG segment of the stock market made it possible to identify and characterize the risks associated with sustainable financing as well as to predict the transformation of the mechanism for compliance with ESG principles in decision-making by transnational corporations.
Keywords: ESG principles, investments, sustainable finance, stock index, anti-ESG ETF, greenwashing, green taxonomy.
Highlights:
- a comprehensive analysis of the issues of using ESG standards in making investment decisions as a tool for implementing the concept of sustainable development has been carried out;
- the possibility of applying ESG standards to evaluate the effectiveness of investment decisions has been studied;
- the correctness of the hypothesis about the greater effectiveness of sustainable investment in comparison with the traditional approach in the medium and longterm is statistically substantiated;
- a forecast is made regardingthe importance of ESG principles for investment decision-making by multinational corporations.
Anna A. Romanova - Orel State University named after I.S. Turgenev, Orel, Russia; Viacheslav A. Perepelkin - Samara State University of Economics, Samara, Russia; Petr A. Romanov - Yandex LLC, Moscow, Russia