Strong ESG Risk Management as a Way to Improve Organisational Resilience in Times of Crisis: An Analysis of WIG-ESG Index Constituents

• Authors: Ulyana Zaremba

Title variants

PL

Mocne zarządzanie ryzykiem ESG jako sposób na zwiększenie odporności organizacji w czasach kryzysu: analiza składników indeksu WIG-ESG

Abstracts

PL

W ciągu ostatniej dekady praktyki zrównoważonego inwestowania znacznie się rozwinęły. Raportowanie ESG płynnie przechodzi od dobrowolności do obowiązku. Inwestując w spółki, które osiągają wysokie wyniki w rankingach ESG, inwestorzy liczą na odporność organizacji na kryzysy i wyższe stopy zwrotu. W związku z dynamicznym rozwojem inwestowania społecznie odpowiedzialnego zarówno w Polsce, jak i na świecie tworzone są nowe indeksy wykorzystujące kryteria screeningu ESG, które z kolei stanowią instrument bazowy dla produktów strukturyzowanych. Celem pracy była analiza składników nowo utworzonego indeksu WIG-ESG oraz omówienie wyników i odporności organizacyjnej spółek w odniesieniu do ekspozycji i zarządzania ryzykiem ESG. Badania wykazały, że kryteria włączenia do indeksu WIG-ESG powinny zostać zmienione w taki sposób, aby wyróżnić spółki, które dbają o mocne zarządzanie ryzykiem ESG i wykluczyć te, których wysiłki w zakresie ESG są znikome. Drugą ważną kwestią jest kwalifikowalność do włączenia. Jeżeli wszystkie spółki będą kwalifikowały się do włączenia do indeksu (rating ESG jako warunek włączenia), ograniczy to rotację składników indeksu i pozwoli na zbadanie zależności pomiędzy ewaluacją oceny ESG spółki na przestrzeni lat a jej sytuacją finansową.

EN

During the last decade sustainable investment practices have evolved significantly. ESG reporting is moving seamlessly from voluntary to mandatory. By investing in companies that score high in ESG rankings, investors hope for the organisation's resilience to the crisis and higher returns. Due to the dynamic development of socially responsible investing both in Poland and worldwide, new indices using ESG screening criteria are being designed, which in turn are the underlying instrument for structured products. The aim of the study was to analyse the constituents of the newly created WIG-ESG index and to discuss its performance and organisational resilience in relation to ESG risk exposure and management. The research showed that the criteria for inclusion in the WIG-ESG index should be amended to recognise companies that care about strong ESG risk management and exclude those with negligible ESG efforts. The second important issue is eligibility for inclusion. If all companies are eligible to be included in the index (ESG testing as a condition for inclusion), this will reduce the rotation of the index's constituents and allow the relation between a company's ESG score after each update and its long-term performance to be explored.

Keywords

EN

ESG risk ratings; organisational resilience; sustainable investing; ESG equity indices; WIG-ESG

PL

ratingi ESG; odporność organizacyjna; zrównoważone inwestowanie; giełdowe indeksy ESG

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
• Journal: Nauki o Finansach
• Year: 2023
• Volume: 28
• Issue: 1
• Pages: 17-31

Dates

published

2023

Contributors

author

Ulyana Zaremba

• University of Information Technology and Management

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Identifiers

DOI

10.15611/fins.2023.1.02

Biblioteka Nauki

16473328