The volume of disclosed information and impression management affect ESG evaluation
ESG scoring has become a popular tool for investors and portfolio managers but they should understand that ESG scoring comes with some bias. Nissay Asset Management uses a simulation model to analyze the effect of corporate information disclosure on ESG scoring.
In recent years, the use of research and analysis of corporate reporting related to ESG factors has become popular among investors and portfolio managers. But as the number of companies issuing sustainability and other ESG-related reports has increased, the job of evaluating the information sources has become increasingly difficult. Nissay Asset Management, which has been engaged in ESG investing for many years, has developed a simulation model to verify the effect of corporate information disclosure on ESG scoring.