In this study, we unpack the ESG ratings of three prominent agencies in Europe and find that (i) each E, S, and G pillar contributes differently to the overall ESG score, (ii) there is a low co-movement between the three E, S, G pillars and (iii) there are specific ESG Key Performance Indicators (KPIs) that are driving these ratings more than others.
Economics Letters, Vol. 256,
2025
