Exploring_Correlation_Between_ESG_and_Finance_Performance_of_S_P-500_Companies.

Please refer to attached full report.  Introduction  ESG is abbreviate of the environment, social responsibility, and corporate governance. When value a company, finance analysts are paying more attention to a company’s intangible assets, besides traditional financial statement figures. From companies’ perspective, managers are eager to know if it is profitable to assume more social responsibilities, to purchase environment-friendly but expensive assets or to share more benefits of the company with employees. In addition, investors doubt whether to invest in a company who have high ESG rank will be profitable because a company has limited resources. So, this report will investigate the correlation between S&P 500 companies’ ESG and their performance from a quantitative perspective. We select S&P 500 as our research target because this index consists of tycoons in each industry in the United States and they have a significant influence on the whole economy. We apply Bloomberg Excel API to acquire historical data from Bloomberg terminal and conduct descriptive and predictive analysis using BI tool and statistical model. Our grand conclusion is ESG has a positive correlation with a company’s operating performance, but ESG has little correlation with a company’s market performance.