In September 2024, a paper on ESG performance and financial implications, co-authored by aiESG President Shunsuke Managi, was published.

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 it as a moderating factor for the financial impact of ESG activities. The use of this indicator illustrates the differences in ESG effects by region and economy, and emphasizes the importance of companies adopting ESG strategies that are tailored to regional characteristics.

[Thesis outline].
A comparative analysis of "Environmental, Social, and Governance (ESG) Performance and Financial Impact of Asian Companies" from 2013 to 2022 in 38 economies. Focusing specifically on Asian companies, the report includes the following

1. differences in ESG ratings:
Significant differences in ESG assessments were found due to differences in methodology among the major assessment organizations. Discrepancies in assessment items can complicate investment decisions and lead to misunderstandings.
Rating agencies (Refinitiv, Bloomberg, MSCI, Arabesque S-Ray, Moody's, Morningstar ESG)

2. room for ESG improvement in Asian companies:
Asian companies have more room to improve their ESG performance than their European counterparts, especially in Southeast Asia, where ESG activities 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
He is a Senior Professor at Kyushu University, Director of the Inclusive Wealth Report of the United Nations. He is a Director of the UN Inclusive Wealth Report, a representative author of the Intergovernmental Panel on Climate Change (IPCC), Vice-Chair of the OECD Joint Working Group on Trade and the Environment, and has worked with many international organizations and companies. He chairs the Subcommittee on Sustainable Investment of the Science Council of Japan. He is a representative author of the Intergovernmental Panel on Climate Change (IPCC). He founded aiESG based on his many years of ESG research.


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