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ESG · Financial Analytics
Does ESG Performance Translate Into Financial Value?
An empirical Fortune 500 analysis examining relationships between ESG scores, profitability, valuation multiples and sector performance using Python, econometric modeling and Power BI.
Research Question
Do companies with stronger ESG scores also demonstrate stronger profitability and valuation outcomes? This study examines that question using a Fortune 500 sample.
Key Findings
At the sample level, the average ESG score was 62.41, average ROA was 0.09 and average P/B was 6.40. The estimated correlation between ESG and ROA in this sample was -0.14.
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