A paper on ESG performance and financial implications, co-authored by Shunsuke Managi, President of aiESG, was published in September 2024.
Yoshida, K., Xie, J., Managi, S., & Yamadera, S. (2024). Environmental, Social, and Governance Performance and Financial Impacts: Comparative Analysis of Companies in Asia. Series, No. 741. https://doi.org/10.22617/WPS240415-2
The paper introduces Inclusive Wealth (Inclusive Wealth, New National Wealth) as an economy-level sustainability indicator and identifies this as a moderating factor for the financial impact of ESG activities. The use of this indicator illustrates the differences in ESG effects across regions and economies and highlights the importance of companies adopting ESG strategies that are tailored to regional characteristics.
[Thesis Summary].
Comparative analysis of 'Environmental (Environmental), Social (Social) and Governance (ESG) performance and financial impact of Asian companies' for the period 2013-2022 in 38 economies. Focusing in particular on Asian companies, the report includes.
1. differences in ESG assessment:
Significant differences were found in ESG assessments due to differences in methodology among the major assessment bodies. The discrepancies in assessment items complicate investment decisions and can lead to misinterpretation.
Evaluation agencies (Refinitiv, Bloomberg, MSCI, Arabesque S-Ray, Moody's, Morningstar ESG)
2. room for Asian companies to improve ESG:
Asian companies have more scope to improve their ESG performance than their European counterparts, particularly in South-East Asia, where ESG activities were found to have a stronger positive impact on financial performance.
3. the impact of Inclusive Wealth:
The sustainability indicator 'inclusive wealth' was found to have a significant impact on the financial impact of ESG activities, suggesting that it is important to develop ESG strategies that are tailored to the characteristics of each region.
《Profile》
Shunsuke Managi, Representative Director, aiESG
Senior Professor, Kyushu University. Director, UN Inclusive Wealth Report; lead author, Intergovernmental Panel on Climate Change (IPCC); Vice-Chair, OECD Joint Working Group on Trade and the Environment; and has worked with many international organisations and businesses. Chair of the Sub-Committee on Sustainable Investment of the Science Council of Japan, Director of theusive Wealth Report, lead author for the Intergovernmental Panel on Climate Change (IPCC). Founded aiESG based on many years of ESG research.
Enquiry about aiESG services: https://aiesg.co.jp/contact/
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