ESG Ratings and the European Stock Market
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- Master of Science 
In recent years, there has been a remarkable surge in stakeholders’ interest in the socially and ethically responsible conduct exhibited by companies. This has prompted numerous companies to integrate Environmental, Social, and Governance (ESG) considerations into their overall business strategies, and as a result, third-party assessments by ESG rating agencies have emerged. This thesis examines the relationship between ESG ratings and stock returns in the European stock market. The findings reveal divergence among different rating providers and a significant impact of ESG scores on stock returns, with the social pillar playing a crucial role. Overall, the study indicates a positive relationship for ESG ratings and stock returns. Nevertheless, further examination is required to determine the applicability of these findings in real-world scenarios.
Masteroppgave(MSc) in Master of Science in Business, sustainable finance - Handelshøyskolen BI, 2023