Do ESG Ratings Drive Financial Performance? A Systematic Analysis of Trends and Challenges

Amelie Heinelt, Dominic Strube, Christian Daase

2025

Abstract

This study examines the relationship between ESG (Environmental, Social, and Governance) ratings and financial performance through a systematic analysis of studies published between 2019 and 2024. The findings reveal that a significant correlation between ESG ratings and financial performance was only demonstrated in a portion of the studies. Regression-based models were the most frequently used methods, followed by panel data and time series analyses. However, no clear statistical relationship between the choice of methodology and the results could be established. Variations in findings are attributed to differences in ESG rating methodologies, data sources, and external factors such as macroeconomic conditions and market volatility. While ESG investments may involve short-term costs, they can contribute to long-term stability. The study highlights the need for standardized ESG ratings and consistent analytical approaches to enable more reliable conclusions.

Paper Citation

in Harvard Style

Heinelt A., Strube D. and Daase C. (2025). Do ESG Ratings Drive Financial Performance? A Systematic Analysis of Trends and Challenges. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 203-208. DOI: 10.5220/0013358400003956

in Bibtex Style

@conference{femib25,
author={Amelie Heinelt and Dominic Strube and Christian Daase},
title={Do ESG Ratings Drive Financial Performance? A Systematic Analysis of Trends and Challenges},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={203-208},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013358400003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - Do ESG Ratings Drive Financial Performance? A Systematic Analysis of Trends and Challenges
SN - 978-989-758-748-1
AU - Heinelt A.
AU - Strube D.
AU - Daase C.
PY - 2025
SP - 203
EP - 208
DO - 10.5220/0013358400003956
PB - SciTePress