ESG ratings in the mining industry: Factors and implications

被引:3
作者
Fikru, Mahelet G. [1 ]
Brodmann, Jennifer [2 ]
Eng, Li Li [3 ]
Grant, J. Andrew [4 ]
机构
[1] Missouri Univ Sci & Technol, Dept Econ, 500 West 13th St, Rolla, MO 65401 USA
[2] Calif State Univ Dominguez Hills, Dept Accounting Finance Econ & Law, Carson, CA 90747 USA
[3] Missouri Univ Sci & Technol, Dept Business & Informat Technol, Rolla, MO 65401 USA
[4] Queens Univ, Dept Polit Studies, Kingston, ON K7L 3N6, Canada
关键词
ESG scores; ESG Risk ratings; Refinitiv; Sustainability; Mining industry; Cost of debt; Return on asset; CORPORATE SOCIAL-RESPONSIBILITY; FINANCIAL PERFORMANCE; SUSTAINABLE DEVELOPMENT; DISCLOSURE; COMPANIES; IMPACT; INDICATORS; MANAGEMENT;
D O I
10.1016/j.exis.2024.101521
中图分类号
X [环境科学、安全科学];
学科分类号
08 ; 0830 ;
摘要
While previous research explores the relationship between ESG ratings, firm size, and financial outcomes, there is a lack of comprehensive analysis comparing multiple ESG ratings within the mining industry. This gap is crucial given the increasing focus on ESG in mining operations and its potential impact on company performance. Based on proprietary financial and ESG ratings data from 200 mining companies, this study investigates the relationship between two different ESG ratings and firm characteristics. We compare ESG-rated firms with unrated firms in terms of firm size, and financial performance indicators, and explore country-level patterns in ESG ratings. Findings reveal that ESG-rated mining companies are generally larger than unrated firms but neither more profitable nor face lower debt costs. The results also show that, among rated firms, larger mining firms have more favorable ESG ratings than smaller ones. However, we fail to find a correlation between ESG ratings and financial performance. Finally, the evidence suggests that mining companies rated high for unmanaged ESG risk are likely to have lower ESG scores. This research contributes to understanding whether and how ESG ratings could impact investment decisions and risk management strategies in the mining sector.
引用
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页数:13
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