Esg score impact on portfolios performance

Abstract

This project aims to evaluate the impact of ESG considerations on the operational and financial metrics of NASDAQ 100 companies. By utilizing the Capital Asset Pricing Model (CAPM) and the Fama-French three-factor model, the analysis explores how ESG factors influence market behavior and financial performance. The dataset, extracted from Refinitiv Eikon, includes historical ESG scores, financial performance data, and risk-related metrics spanning 15 years. Major findings indicate that ESG integration can significantly affect financial stability and shareholder returns, highlighting the materiality of ESG risks in investment decision-making. Keywords: ESG Integration, NASDAQ 100, Asset Management, Risk Management, Sustainable Investing.