Title: An empirical comparison between ESG 100 & sectoral indices with perspective of circular economy

Authors: Zakir Mujeeb Shaikh; R. Suguna

Addresses: Department of Computer Science and Engineering, Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, Chennai, Tamil Nadu, India ' Department of Computer Science and Engineering, Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, Chennai, Tamil Nadu, India

Abstract: The past decade has seen the renewed importance of Environment Social Governance (ESG) awareness raising in the financial market. In this perspective, the Circular Economy (CE) becomes the central relevance. This study aims to examine the impact of the circular economy on sectoral indices over the ESG100 index. To investigate ESG scores, quantitative measures are performed. Our experimental setup is designed using a python programming language. The National Stock Exchange India (NSEI) data for the period of 1 January 2011 to 28 February 2022 is obtained from public domain. By comparing the ESG 100 index with other sectoral indices, we found that the ESG 100 index portfolio has a positive impact on stock performance. Although ESG 100 index score does not express higher performance in CE, further, our analysis shows that, to date, there is no evidence that CE initiative can influence stock returns.

Keywords: environment; social; governance; sector; correlation; financial market.

DOI: 10.1504/WREMSD.2024.140710

World Review of Entrepreneurship, Management and Sustainable Development, 2024 Vol.20 No.5, pp.606 - 618

Received: 02 Apr 2022
Received in revised form: 10 May 2022
Accepted: 17 May 2022
Published online: 02 Sep 2024 *

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