Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa
The study examines the impact of Environmental, Social and Governance (ESG) ratings on portfolio performance. In addition to using the individual ESG components, we also overcome the shortcomings of an alpha-based performance evaluation by applying a wide range of portfolio performance indicators an...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2025.2464507 |
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| _version_ | 1850140063812288512 |
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| author | Jared A. Short Godfrey Ndlovu |
| author_facet | Jared A. Short Godfrey Ndlovu |
| author_sort | Jared A. Short |
| collection | DOAJ |
| description | The study examines the impact of Environmental, Social and Governance (ESG) ratings on portfolio performance. In addition to using the individual ESG components, we also overcome the shortcomings of an alpha-based performance evaluation by applying a wide range of portfolio performance indicators and examine how the performance indicators vary over different time periods. Using data from the Johannesburg Stock Exchange, over the period 2012 to 2022, the study found that portfolios with higher ESG scores have superior returns, particularly at the wake of the COVID-19 pandemic. The findings suggest that ESG fund construction should not be overlooked, and that portfolio managers who consider ESG ratings in stock selection may achieve better overall fund performance. |
| format | Article |
| id | doaj-art-55d3c41128564b4fa4bb47aa7e0969a2 |
| institution | OA Journals |
| issn | 1514-0326 1667-6726 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj-art-55d3c41128564b4fa4bb47aa7e0969a22025-08-20T02:29:59ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2464507Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South AfricaJared A. Short0Godfrey Ndlovu1School of Economics, University of Cape Town, Cape Town, South AfricaSchool of Economics, University of Cape Town, Cape Town, South AfricaThe study examines the impact of Environmental, Social and Governance (ESG) ratings on portfolio performance. In addition to using the individual ESG components, we also overcome the shortcomings of an alpha-based performance evaluation by applying a wide range of portfolio performance indicators and examine how the performance indicators vary over different time periods. Using data from the Johannesburg Stock Exchange, over the period 2012 to 2022, the study found that portfolios with higher ESG scores have superior returns, particularly at the wake of the COVID-19 pandemic. The findings suggest that ESG fund construction should not be overlooked, and that portfolio managers who consider ESG ratings in stock selection may achieve better overall fund performance.https://www.tandfonline.com/doi/10.1080/15140326.2025.2464507ESG scoresportfolio performancestock marketSouth Africa |
| spellingShingle | Jared A. Short Godfrey Ndlovu Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa Journal of Applied Economics ESG scores portfolio performance stock market South Africa |
| title | Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa |
| title_full | Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa |
| title_fullStr | Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa |
| title_full_unstemmed | Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa |
| title_short | Environmental, social, and governance (ESG) scores and portfolio performance: evidence from South Africa |
| title_sort | environmental social and governance esg scores and portfolio performance evidence from south africa |
| topic | ESG scores portfolio performance stock market South Africa |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2025.2464507 |
| work_keys_str_mv | AT jaredashort environmentalsocialandgovernanceesgscoresandportfolioperformanceevidencefromsouthafrica AT godfreyndlovu environmentalsocialandgovernanceesgscoresandportfolioperformanceevidencefromsouthafrica |