A Study on the Relationship Between ESG News Keywords and ESG Ratings

Since the UN Principles for Responsible Investment (PRI) was launched in 2006, interest and investment related to ESG have been continued to increase. In particular, global asset managers such as BlackRock build an asset portfolio in consideration of ESG ratings, and ESG has now become important non-financial information when investors should consider when making in-vestment decisions. The top group of the MSCI ESG Index shows higher returns and lower stock price volatility, proving that ESG ratings are important investment information. However, ESG ratings are announced once a year, so they have become important information for investors who make mid- to long-term investments, but it can be seen that non-institutional investors receive ESG news every day rather than ESG ratings. The purpose of this paper is to reveal the correlation between daily ESG-related news and each E/S/G grade, focusing on the keywords of the main disclosure metrics according to the ESG disclosure guidance by KRX.