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ESG Whitepaper Series: Rating Implementation



This paper focuses purely on the ESG analytics the manager needs to have to make investment decisions. It assumes that ESG-ratings are already in place as normalized and consolidated data. It then defines an analytical framework that builds upon the assumption that ESG data is essentially trying to capture information around market externalities, which transpire when society is not properly compensated despite there being a normal market equilibrium. We show that there are in fact a company’s Beta, and a Beta that captures society’s interests, each generating their own equilibriums.


Need to take a step back? Check out our first Whitepaper in this series: Addressing the Challenges in ESG Data Management

Implementing an ESG-Rating into the investment process