Divergences in ESG ratings: an obstacle to the development of sustainable finance
DOI:
https://doi.org/10.13133/2037-3651/19261Keywords:
ESG ratings, sustainable finance, corporate governanceAbstract
The study examines the divergence in ESG ratings assigned by LSEG Workspace and Bloomberg to around 900 companies included in the STOXX Europe 600 and S&P 500 indices. Significant differences emerge between the scores, which are not uniform across sectors or geographic areas. These discrepancies are influenced by firm-specific characteristics such as size, governance structure, financial performance, level of disclosure, and ESG-related controversies. Larger companies tend to show more pronounced divergences, while factors like operational efficiency and controversies affect rating consistency differently in Europe and the United States. The findings highlight methodological limitations in ESG ratings and underscore the need for greater standardization, transparency, and alignment across providers to ensure reliable assessments and support truly sustainable financial markets.
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