Clustering of firms based on environmental, social, and governance ratings: Evidence from BIST sustainability index

Sarıyer, Görkem; Taşkın, Dilvin

doi:10.1016/j.bir.2022.10.009

Cited by 9 publications

(6 citation statements)

References 42 publications

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“…Another application is the classification of stock market indices as laid out by Chmielewski et al [101]. They highlight the classification of listed companies in terms of ESG criteria, i.e., "the significance of forming clusters and linking sustainability practices with performance characteristics" [102]. Kishan and Kiran [103], correspondingly, focus on SDG 8, which supports small-and medium-sized enterprises (SMEs) as one of the five SDGs identified as an area of action for sustainability by stock exchanges.…”

Section: Sustainable Stock Market Finance: General Discussionmentioning

confidence: 99%

Maturity Analysis of Stock Exchanges in Africa: Prepandemic Sustainability Perspective

et al. 2023

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This paper focuses on the economic dimension of sustainability by examining the stock exchange interface of financial markets, the influence of capital market stakeholders, and the instruments that contribute to a supportive fiscal framework. Only mature stock exchanges are present in sustainability indices; hence, comparative assessment of stock exchanges is limited and contributes to the complexity of conducting such a study. Utilizing multivariate analysis, this study investigates the potential for African stock exchanges to support sustainability. An empirical study was conducted on a selected sample of 15 African stock exchanges at the end of 2020 using collected 5-year interval data from Q1 of 2021. A total of 22 variables were selected based on their legitimacy to support sustainability. Using exploratory factor analysis, two key sustainability drivers of differentiation and classified exchanges were identified, i.e., hard and soft. K-means classification method verified the results and found that of the four identified homogeneous groups, one—the Johannesburg Stock Exchange, Nigerian Stock Exchange, and the Egyptian Exchange—emerged on top. Two smaller groups had the potential to be strengthened, and the majority group lagged behind. The research demonstrated the importance of identifying key sustainability drivers and examined the materiality of the drivers within an African context.

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Section: Sustainable Stock Market Finance: General Discussionmentioning

confidence: 99%

Maturity Analysis of Stock Exchanges in Africa: Prepandemic Sustainability Perspective

et al. 2023

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“…The fourth stage in this analysis is clustering the company's ESG scores. Clustering is the process of grouping objects or data that are similar to points into clusters in such a way that they become a cluster (Sariyer and Taşkın, 2022). A cluster is a collection of data that is similar to each other and dissimilar to other cluster data.…”

Section: Data Analysis: Esg Performance Assessment and Company Cluste...mentioning

confidence: 99%

Clustering of Companies Based on Sustainability Performance using ESG Materiality Approach: Evidence from Indonesia

Saraswati,

Ghofar,

Atmini

et al. 2024

IJEEP

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The framework for environmental, social, and governance (ESG) disclosure has become crucial throughout the world. Globally, various ESG reporting frameworks have emerged, but there are still few companies in Indonesia that are involved in ESG. This research aims to develop an ESG performance assessment instrument based on material aspects of sustainability for all industries in Indonesia. The data was obtained by extracting 472 corporate sustainability reports in Indonesia during 2021 and ESG indicators were determined through focus group discussions and inter-rater reliability tests. The ESG performance assessment in this study adopted the methodology of the Refinitiv Institute and the ESG indicator weights were modified according to the new ESG indicators. A total of 65 ESG indicators were analyzed and these showed that the majority of companies in Indonesia have relatively satisfactory ESG performance and a moderate level of transparency in reporting important ESG data to the public. Cluster analysis with the K-means algorithm shows that each company needs to improve performance on at least one ESG pillar. The results of this research support the initiatives that have been taken by global regulators and stock exchanges to require companies to disclose ESG information in the future.

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“…Perusahaan berorientasi keberlanjutan berusaha terhubung dengan gaya hidup konsumen dan strategi-legitimasi mereka bergantung pada aspek keberlanjutan yang diutamakan (Thongplew et al, 2017). Penting untuk mempertimbangkan perbedaan dalam pendekatan perusahaan terhadap tiga pilar ESG saat membuat keputusan investasi (Sariyer & Taşkın, 2022). Pengungkapan tentang emisi, inovasi, dan kontroversi lingkungan berdampak positif dan signifikan pada tingkat kinerja lingkungan dan ESG Perusahaan (Almaqtari et al, 2023).…”

Section: Alternatif Pemecahan Masalahunclassified

Inovasi Berkelanjutan: ESG Initiatives Untuk Masa Depan Yang Bertanggung Jawab

Hendro,

Bowo Pranogyo

2023

JISMAB

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In an era of globalization marked by rapid technological progress, sustainability has become a central issue governing many aspects of human life. Sustainability is no longer just an academic term but a guiding principle that guides action and innovation across all sectors. Continuous innovation plays an important role in responding to environmental, social and corporate challenges in operating responsibly. ESG (Environmental, Social and Governance) principles have emerged as a key framework inspiring continuous innovation, key to creating a more sustainable and responsible future. In the context of the port industry, Pelindo, one of the largest operators, is committed to various ESG initiatives to maintain sustainability in its operations. These measures include environmental, social and governance actions aimed at reducing environmental impact, improving the well-being of communities surrounding the port and strengthening corporate governance. Pelindo understands the importance of maintaining ecosystems and creating a positive impact. This effort, therefore, constitutes an important step towards a socially and environmentally responsible future. Close collaboration between government, business and communities is needed to promote sustainability in the port industry, considering sustainable logistics practices and low-carbon energy as solutions for a more sustainable future.

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Clustering of firms based on environmental, social, and governance ratings: Evidence from BIST sustainability index

Cited by 9 publications

References 42 publications

Maturity Analysis of Stock Exchanges in Africa: Prepandemic Sustainability Perspective

Maturity Analysis of Stock Exchanges in Africa: Prepandemic Sustainability Perspective

Clustering of Companies Based on Sustainability Performance using ESG Materiality Approach: Evidence from Indonesia

Inovasi Berkelanjutan: ESG Initiatives Untuk Masa Depan Yang Bertanggung Jawab

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