Measuring Sustainability Under Uncertainty: Introducing Net ESG (N‐ESG) Performance

IF 13.3 1区管理学 Q1 BUSINESS

Business Strategy and The Environment Pub Date : 2025-10-09 DOI:10.1002/bse.70246

Serdar Ongan, Cem Işık, Rahman Aydın, İlyas Kays İmamoğlu, Rafael Alvarado, Munir Ahmad

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Abstract

This study examines the reliability of environmental, social, and governance (ESG) scores in uncertain environments by introducing a new indicator, Net ESG (N‐ESG), for the first time. This new index was calculated by subtracting a new ESG‐based sustainability uncertainty index (ESGUI) from ESG scores. This study employed Pedroni (2004) and Westerlund (2007) tests, as well as the DOLS method, for 12 developed countries from 2002 to 2020. It analyzed the impact of economic, geopolitical, climate, and energy price‐related uncertainties on both ESG and N‐ESG through eight different models. Empirical findings indicate that a 1% change in CPU, GPR, EPU, and OPU indices increases ESG by 0.048, 0.355, 0.111, and 0.044 units, respectively, while the same rate of change decreases N‐ESG by −6.501, −18.756, −8.972, and −8.193 units, respectively. These results can be interpreted as ESG scores may not fully reflect the “true” performance of companies in times of uncertainty, while N‐ESG provides a more accurate representation of sustainability practices. These results suggest that policymakers should focus their sustainability policies not only on increasing ESG scores but also on preserving the true value of ESG by reducing uncertainty effects.

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不确定性下的可持续性衡量：引入净ESG （N - ESG）绩效

本研究通过首次引入净ESG （N - ESG）这一新指标，检验了环境、社会和治理（ESG）评分在不确定环境中的可靠性。这个新指数是通过从ESG分数中减去一个新的基于ESG的可持续性不确定性指数（ESGUI）来计算的。本研究采用Pedroni（2004）和Westerlund（2007）检验以及DOLS方法，对2002年至2020年12个发达国家进行了研究。通过八个不同的模型，分析了经济、地缘政治、气候和能源价格相关的不确定性对ESG和N - ESG的影响。结果表明，当CPU、GPR、EPU和OPU指数变化1%时，ESG分别增加0.048、0.355、0.111和0.044个单位，而N - ESG则分别减少- 6.501、- 18.756、- 8.972和- 8.193个单位。这些结果可以解释为ESG分数可能不能完全反映公司在不确定时期的“真实”表现，而N - ESG则更准确地反映了可持续发展实践。这些结果表明，决策者在制定可持续性政策时，不仅应关注提高ESG得分，还应关注通过减少不确定性影响来保持ESG的真正价值。

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来源期刊

Business Strategy and The Environment Multiple-

CiteScore

22.50

自引率

19.40%

发文量

336

期刊介绍： Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.