ESG Topic Analysis#
The coverage of ESG topics in the Korean capital market extracted from the analyst research reports#
The cover image shows four ESG topics out of all thirty-six: each E, S, G three main areas and ESG investment topic.
Given the explosive growth in ESG investing and reporting, analysts cover the ESG issues naturally.
ESG tended to be lumped together, but the cover image and the below images of all topics show that each ESG issue has its own representation.
The natural next step is to dig into their trends and relative importance, among other issues.
The changes in proportions of ESG topics and their relative composition would tell more stories.
w.r.t. risk-return profiles
w.r.t. effect on the valuation of a firm
36 Topics from the analyst reports
Comparing the ESG Topic Trends#
Overall, the ESG topics take around 2 percent of the weight on average.
Among E, S, and G, the Social area occupies the largest proportion.
This is an effect that S includes the Corporate Social Responsibility (CSR) issues.
Though the Environmental topic takes the smallest share, its variability is the biggest.
Recently, the proportion of the Environmental topic has been increasing.
Comparing the topic weights by the sectors shows sizable variations among them.
This analysis is done using the ekorpkit package.