Submission Type

Poster

Start Date

4-21-2022

Abstract

Environmental, Social, and Corporate Governance (ESG) is an increasingly popular method used by investors to screen for potential investments that align with their personal values. It’s primary purpose is to implement a common set of standards to measure the impact of business investments from an environmental, societal, and moral basis in addition to mitigating risk. An increase in international demands for rapid action to combat the effects of climate change has prompted the United Nations 2021 Climate Change Conference (COP26) to call for billions of dollars to be spent on climate finance as 130 countries have pledged to attain carbon neutrality by 2050. Setting up our research through a global lens, we chose to analyze the ESG markets of the United States, China, Germany, Brazil, Australia and Nigeria because they have the highest gross domestic product (GDP), or economic strength, of their respective continents and are most likely to have accurate reporting. Recent studies have shown that sustainable investing outperforms traditional investing in the long-run, taking into account unexpected events such as the COVID-19 pandemic. While every country does not have mandatory ESG reporting, the majority of large corporations publish voluntary reports of their practices in conjunction with broader marketplace trends. This leads us to believe that implementing ESG on a global scale, keeping in mind regional differences, will ultimately lead to more sustainable economies and increase their long-term GDP, thereby improving the livelihoods of their citizens.

Comments

Sponsored by Jasmine Tang

Share

COinS
 
Apr 21st, 12:00 AM

25 -- How Might ESG Transform the Global Market?

Environmental, Social, and Corporate Governance (ESG) is an increasingly popular method used by investors to screen for potential investments that align with their personal values. It’s primary purpose is to implement a common set of standards to measure the impact of business investments from an environmental, societal, and moral basis in addition to mitigating risk. An increase in international demands for rapid action to combat the effects of climate change has prompted the United Nations 2021 Climate Change Conference (COP26) to call for billions of dollars to be spent on climate finance as 130 countries have pledged to attain carbon neutrality by 2050. Setting up our research through a global lens, we chose to analyze the ESG markets of the United States, China, Germany, Brazil, Australia and Nigeria because they have the highest gross domestic product (GDP), or economic strength, of their respective continents and are most likely to have accurate reporting. Recent studies have shown that sustainable investing outperforms traditional investing in the long-run, taking into account unexpected events such as the COVID-19 pandemic. While every country does not have mandatory ESG reporting, the majority of large corporations publish voluntary reports of their practices in conjunction with broader marketplace trends. This leads us to believe that implementing ESG on a global scale, keeping in mind regional differences, will ultimately lead to more sustainable economies and increase their long-term GDP, thereby improving the livelihoods of their citizens.

 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.