Features of Correlations of ESG-Ratings and Financial Coefficients

Abstract Ecological, social and governance factors are important parts of the development not only of a concrete company but of all mankind, which will be left to future generations. The ESG-rating is one of the instruments with which one can estimate the effectiveness of a company in these spheres. The aim of this study is to figure out the relationships between the componennts of ESG-rating and ESG-rating itself to the company's financial coefficients which can represent the financial position. For successful research there was examined “Thomson Reuters” ESG-ratings methodology, studied world sources to the “ESG” topic, and literature, which teach how to analyse data in “IBM SPSS Statistics”. There was collected data for 1600 companies from Forbes Global 2000 list, which says that 20% of world biggest companies does not care much about ESG-factors. Data was collected, by using “Thomson Reuters Eikon” computer software, and, subsequently, data was sorted and brought to convenient view for further analysis. Using the computer program “IBM SPSS Statistics”, a frequency and correlation analysis was carried out, after which a representation of the data structure was received (growth in the number of companies that report on ESG-factors, and the growth in the quality of these indicators) and the relationships between variables were established (correlation of all 13 ESG indicators with financial coefficient ROA with a link power of up to 0.2, which is also often called a "very weak correlation").