SDGs, ESG Risk and Firm Operations--Evidence from S&P 500 Companies

Yalin Zhou; Xiaohui Tang; Yihan Wang

doi:10.54254/2754-1169/2024.26675

Advances in Economics, Management and Political SciencesOpen access

SDGs, ESG Risk and Firm Operations--Evidence from S&P 500 Companies

Research Article

Open Access

SDGs, ESG Risk and Firm Operations--Evidence from S&P 500 Companies

Yalin Zhou ^1* Xiaohui Tang ², Yihan Wang ³

¹ University of Birmingham

² Southwestern University of Finance and Economics

³ Xiamen University

^*Corresponding author: yxz1334@student.bham.ac.uk

Published on 9 September 2025

AEMPS Vol.215

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-357-4

ISBN (Online): 978-1-80590-358-1

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Abstract

This research collects and analyses the past data on Sustainable Development Goals (SDGs) in S&P 500 companies and its relationship with Environment, Social and Governance (ESG) Risk and firm operations. Our research creates a new standard to record the SDGs mentioned in companies’ official websites and reports. Firstly, this study finds that SDGs have a strong explanatory power on ESG risk while they still have some differences. Secondly, Quality Education and Life below Water both have a positive effect on the Return on Equity of the companies, while Life on Land has a negative effect. Finally, for Tax to Earnings before Tax, this research finds that Zero Hunger, Industry, Innovation and Infrastructure, and Climate Action all have a positive effect on companies. In contrast, there is a negative effect on doing projects of Gender Equality and Partnership for the Goals. This research could give a reference for the companies, especially when they decide to plan to develop in sustainable areas, which could show a relatively comprehensive reference on their future short and long-term programs. It could also provide some thoughts and conclusions on the SDGs area, which give some ideas for researchers who will study this in the future.

Keywords:

SDGs, ESG, return on equity (ROE), tax to earning before tax (TAXTOEBT).

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References

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References

[2]. Madison, N., & Schiehll, E. (2021). The Effect of Financial Materiality on ESG Performance Assessment. Sustainability, 13(7), 3652.

[3]. United Nations. (2024). The 17 Sustainable Development Goals. United Nations; United Nations. https: //sdgs.un.org/goals

[4]. Van der Waal, J. W. H., & Thijssens, T. (2020). Corporate involvement in Sustainable Development Goals: Exploring the territory. Journal of Cleaner Production, 252(1), 119625.

[5]. WBCSD. (2017). Better business, better world. World Business Council for Sustainable Development. WBCSD. https: //www.wbcsd.org/resources/ceo-guide-to-the-sdgs/

[7]. Dyllick, T., & Muff, K. (2016). Clarifying the Meaning of Sustainable Business. Organization & Environment, 29(2), 156–174.

[11]. Li, Q., Luo, W., Wang, Y., & Wu, L. (2013). Firm performance, corporate ownership, and corporate social responsibility disclosure in China. Business Ethics: A European Review, 22(2), 159–173.

[12]. Khan, H. (2010). The effect of corporate governance elements on corporate social responsibility (CSR) reporting. International Journal of Law and Management, 52(2), 82–109.

Cite this article

Zhou,Y.;Tang,X.;Wang,Y. (2025). SDGs, ESG Risk and Firm Operations--Evidence from S&P 500 Companies. Advances in Economics, Management and Political Sciences,215,43-53.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of the 4th International Conference on Financial Technology and Business Analysis

ISBN: 978-1-80590-357-4(Print) / 978-1-80590-358-1(Online)

Editor: Lukáš Vartiak

Conference website: https://2025.icftba.org/

Conference date: 12 December 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.215

ISSN: 2754-1169(Print) / 2754-1177(Online)

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