ESG scores and political systems: a sectoral view
Keywords
No Thumbnail Available
Authors
Issue Date
2025-07-07
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
This study looks into the association between ESG scores and a country’s political system, and how this differs between sectors. This is done by asking the following research question: How are political systems associated with ESG scores, and how does this differ between sectors? A country’s political system is measured by the democracy level. Expected was that ESG scores and democracy levels were positively associated, and that this association differed between sectors. This research was done using a quantitative research method, namely the fixed effects method. The ESG scores used are obtained from LSEG. The dataset used has a timeframe from 2008 until 2023 and consists of 10,013 companies across 71 countries. The results show a significant negative association between ESG scores and democracy levels, and that this association differs for every sector from at least one other sector. These results have implications for NGOs and governments, who can tailor their environmental strategies or initiatives more effectively. Furthermore, sustainable investors can use the results to enhance decision-making and risk management.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen