Author(s)

Shuning Gao ¹, Beijia Jin ¹, Zheng Tao ²

Affiliation(s)

¹ College of Business and Public Management, Wenzhou-Kean University, No.88 Daxue Road, Wenzhou City, Zhejiang Province, China
² Department of Statistics and Data Science, National University of Singapore, 10 Kent Ridge Crescet, 276000, Singapore

Corresponding Author

Zheng Tao

ABSTRACT

This study takes S&P500 companies’ ESG disclosure score and Environmental，Social and Governance disclosure score separately and using SVD algorithm to get the industry-level ESG score graphs. Through analyzing the graphs, we found that the leisure products, tobacco, automobiles industries occupied the top behaviour under the total ESG disclosure score, which deserves to mention that the tobacco, which is normally regarded as the sin stock and shunned by the investors, ranks second among all the industries. For Environmental, Social and Governance disclosure score separately, leisure products, real estate management & devel, tobacco industries occupy the first place respectively, and the disclosure score for Governance for all industries is overall higher than Social and Environmental. In conclusion, this study provides guidance on stock recommendation for ESG investors.

KEYWORDS

Environmental, Social and Governance (ESG), investment, SVD algorithm

CITE THIS PAPER

Shuning Gao, Beijia Jin, Zheng Tao, Industry-Level Impact of Environmental, Social and Governance (ESG) Factors for Alternative Investment. Financial Engineering and Risk Management (2022) Vol. 5: 110-116. DOI: http://dx.doi.org/10.23977/ferm.2022.050615.

REFERENCES

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