What question did this study set out to answer?

This research aims to explore the intricate relationship between ESG ratings and the risk profiles of European companies.

June 3, 2026

Snapshots of The Impact of ESG Ratings on the Systematic and Unsystematic Risk of European Companies

Key Points

This research aims to explore the intricate relationship between ESG ratings and the risk profiles of European companies.
Analyzed ESL ratings and their impact on systematic and unsystematic risk for STOXX Europe 600 companies.
Research covered the period from 2017 to 2022.
Considered variables such as time period, industry sensitivity, and rating methodology.
Findings indicate a complex relationship between ESG ratings and both systematic and unsystematic risk.
The impact of ESG ratings varies significantly depending on the industry.
Fluctuations in risk profiles are observed over different time periods and depend on the methodology used for ratings.

Abstract

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that, for STOXX Europe 600 companies from 2017 to 2022, the relationship between ESG ratings and companies’ systematic and unsystematic risk profiles is complex and dynamic, shaped by time period, industry sensitivity, and rating methodology.

Snapshots of The Impact of ESG Ratings on the Systematic and Unsystematic Risk of European Companies

Key Points

Abstract

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