Quantitative Analysis of ESG Weightings and their Impact on the Overall Sustainability Score: A longitudinal study of companies listed on the CAC 40 ESG index

Résumé

This research article presents a documentary analysis of ESG ratings and their relationship with the composition of sustainability in the context of each ESG component (environmental, social, and governance aspects). Furthermore, ESG ratings measure a company's non-financial performance, including environmental impact, social responsibility, and corporate governance, and are increasingly important for investors and businesses. However, this article examines the relative weighting of ESG criteria and their impact on the overall ESG rating, attempting to answer which aspect carries the most weight in ESG ratings. To achieve the study's quantitative objective, a longitudinal study will be conducted on a sample of companies listed on the CAC 40 ESG index. Data will be collected from the REFINITIV database, and a quantitative panel data method will be employed for 11 years from 2010 to 2020.