IDEAS home Printed from https://ideas.repec.org/h/pal/pmschp/978-3-031-24876-4_2.html
   My bibliography  Save this book chapter

Dissecting the European ESG Premium vs the US: Is It All About Non-financial Reporting?

In: Creating Value and Improving Financial Performance

Author

Listed:
  • Rocco Ciciretti

    (Tor Vergata University)

  • Ambrogio Dalò

    (University of Groningen)

  • Giovanni Ferri

    (LUMSA University of Rome)

Abstract

For optimists its accelerated sustainable transition gives Europe a competitive advantage toward investors who increasingly demand financial assets. For pessimists, instead, the transition imposes huge and unjustified costs. We assess whether Europe is outperforming the US in sustainable finance, which is driven by companies’ ESG ratings, measuring environmental risks (E—Environmental), social ones (S—Social), and companies’ own administration risks (G—Governance). Comparing S&P500 companies with a similar group of listed European companies, the latter enjoy 14% higher mean ESG ratings than the latter. We also show that the EU advantage descends from EU companies’ better non-financial disclosure. Thus, EU green transition policies offer European companies’ advantages in accessing sustainable finance and, at least in this area, optimists seem to be right.

Suggested Citation

  • Rocco Ciciretti & Ambrogio Dalò & Giovanni Ferri, 2023. "Dissecting the European ESG Premium vs the US: Is It All About Non-financial Reporting?," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Paul Wachtel & Giovanni Ferri & Ewa Miklaszewska (ed.), Creating Value and Improving Financial Performance, chapter 0, pages 27-57, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-3-031-24876-4_2
    DOI: 10.1007/978-3-031-24876-4_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:pmschp:978-3-031-24876-4_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.