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ESG Ratings and the Stock Markets

  • Benoit Leleux
  • Jan van der Kaaij
Chapter

Abstract

After introducing the primary components of a proper vectoring approach, namely a sound company purpose, a focus on a small set of relevant materialities synchronized to the Sustainable Development Goals, we endeavor to explore the connection between sustainability and the environmental, social and governance (ESG) ratings and how the latter are evaluated by stock markets. With the help of several company examples, this chapter first examines the increasing awareness of ESG factors within the investment community, then moves on to suggest an approach for designing a company-specific ESG ratings game plan. An overview of the most influential ESG ratings is also provided, including a summary of their background, methodology and typical usage.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Benoit Leleux
    • 1
  • Jan van der Kaaij
    • 2
  1. 1.International Institute for Management DevelopmentLausanneSwitzerland
  2. 2.Finch & BeakBredaThe Netherlands

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