Divergence of ESG Ratings for Chinese Companies

Activity: SupervisionCompleted SURF Project

Description

This study investigates the divergence in environmental, social, and governance (ESG) ratings for Chinese companies using data from four major ESG rating agencies: Huazheng, Wind, RSK, and Bloomberg. Through descriptive and regression analyses, we find significant differences in ESG ratings across agencies, both in overall scores and in the individual dimensions of “E” (Environmental), “S” (Social), and “G” (Governance). Further analysis reveals that firm-level characteristics such as whether the firm is a state-owned and whether the firm has a positive profit growth relate to these divergences in ESG ratings among Chinese listed companies. These findings underscore the need for greater attention to the factors influencing ESG ratings.
Period25 Jun 202427 Aug 2024