On the Validity of Environmental Performance Metrics

Semenova, Natalia; Hassel, Lars G.

doi:10.1007/s10551-014-2323-4

Cited by 210 publications

(143 citation statements)

References 32 publications

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“…The ASSET4 database enjoys recognition for its complete ratings of social responsibility, including environmental, corporate governance, economic and social dimensions, providing objective, comparable and systematic extra-financial information that is assessed by independent external social audits [100]. This database, founded in 2003, collects and compiles publicly available information on firms' CSR strategies using 750 individual data points, combined into over 280 key performance indicators from over 4612 large firms distributed around the world and belonging to several industries.…”

Section: Samplementioning

confidence: 99%

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

2017

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Abstract:The relationship between corporate environmental performance and corporate financial performance has been extensively studied in developed countries, and has received less attention in developing countries. For this reason, the main objective of this paper is to examine the effect of corporate environmental performance on corporate financial performance during a global financial crisis, depending on the economic development level of the country where a firm is located. To this end, we obtain data for a sample of 2982 large firms from 2008 to 2015. We apply Petersen's approach to these data, adjusting the standard errors for clustering by both firm and year. The results obtained show that the adoption of environmental practices significantly and positively affects the corporate financial performance in developed and developing countries. However, this effect is stronger for firms located in developing countries than those located in developed countries.

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Section: Samplementioning

confidence: 99%

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

2017

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“…Similarly, the literature reveals considerable diversity in the conceptual understanding of SRI (Höchstädter & Scheck, ) albeit with a tendency to focus on financial concepts, particularly the financial performance of SRI portfolios (Capelle‐Blancard & Monjon, ). The ESG literature has also raised issues regarding the transparency and reliability of existing metrics (Dorfleitner, Halbritter, & Nguyen, ; Semenova & Hassel, ). However, the diversity of SRI literature is not well mapped, and there is little understanding of the importance of ESG metrics.…”

Section: Introductionmentioning

confidence: 99%

A systematic literature review of socially responsible investment and environmental social governance metrics

2019

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Socially responsible investment (SRI) encompasses both ethical and financial paradigms. This systematic literature review explores three key research themes within the SRI literature, identifying a significant disconnect between themes and a fixation on the financial (as opposed to ethical) paradigm. One of the foundations of SRI is environmental, social, and governance (ESG) metrics. This review confirms the importance of ESG metrics in the SRI field, as they play two crucial roles, namely, as a proxy for sustainability performance and an enabler of the SRI market. However, there are two main issues related to ESG metrics that undermine their reliability: a lack of transparency and a lack of convergence.

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“…This credibility is also visibly reflected in an increased reliance on the data provided by CSR rating agencies (principally categorised in terms of environmental-, social-and governance-related items) by many academic studies. This is motivated by a search for quantitative proxies of corporate social performance (Igalens et al, 2008;Bessire & Onnee, 2010;Semenova & Hassel, 2014;Scott et al, 2014), particularly those deemed to be outside the direct control of the reporting enterprise (Parguel et al, 2011). Bessire & Onnee (2010) argue that many agencies adopt a utilitarian ideology privileging scientific methods, quantitative measures (metrics), financial-led clients and transparency of the methodologies.…”

Section: Introductionmentioning

confidence: 99%

An analysis of the methodologies adopted by CSR rating agencies

Saadaoui

Soobaroyen

2018

SAMPJ

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Purpose: This paper analyses the similarities and differences in the methodologies adopted by CSR (corporate social responsibility) rating agencies. Design/methodology:We gather secondary and primary evidence of practices from selected agencies on the methodologies and criteria they rely upon to assess a firm's CSR performance. Findings:We find evidence of similarities in the methodologies adopted by the CSR rating agencies (e.g. the use of environment, social and governance themes, exclusion criteria, adoption of positive criteria, client/'customised' input, quantification), but also several elements of differences emerge, namely in terms of the thresholds for exclusion, transparent vs. confidential approach, industry-specific ratings, and weights for each dimension. Drawing from Sandberg et al.'s (2009) conceptualisations, we tentatively argue that this mixed picture may reflect competing organisational pressures to adopt a differentiation approach at the strategic and practical levels whilst recognising, and incorporating, the 'globalising' tendencies of the CSR business at the terminological levels.Implications: Although our data is based on a relatively small number of agencies, our findings and analysis convey some implications for users of CSR ratings and policy-makers;

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On the Validity of Environmental Performance Metrics

Cited by 210 publications

References 32 publications

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

Analyzing the Effect of Corporate Environmental Performance on Corporate Financial Performance in Developed and Developing Countries

A systematic literature review of socially responsible investment and environmental social governance metrics

An analysis of the methodologies adopted by CSR rating agencies

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