How E, S, and G scores impact S&P 500 firms’ performance

Abstract

Currently, organizations see environmental and financial performance as an inseparable binomial. Against this backdrop, this study aims to understand the individual impact of the Environmental, Social, and Governance pillars on business performance. To this end, this dissertation is structured into two articles. In the first, a systematic review of the literature on business performance in different clusters is carried out, providing a clear overview of trends and indicating possible directions for future research. In the second article, based on a panel of S&P 500 companies (from 2018 to 2024), the E (environmental), S (social), and G (Governance) scores developed by Bloomberg were collected. The results show that only the E (Environmental) score has a positive impact on corporate performance (ROA), while the S score has a negative impact, and the G score was not statistically relevant. The results obtained are among the few studies to dissociate ESG into its different pillars, so the findings may be useful in terms of directing resources and re-evaluating S and G strategies.