Do ESG Ratings Capture Human Rights Performance? Evidence from European and U.S. Firms

This thesis investigates whether ESG ratings accurately reflect corporate human rights performance. While ESG has become a key benchmark for corporate sustainability, its ability to capture social and human rights outcomes remains uncertain. Using Refinitiv data for firms listed in the STOXX Europe 600 and S&P 500 between 2010 and 2025, the study analyzes whether human rights controversies affect ESG scores. Combining cross-sectional and panel regressions, it also examines potential trade-offs between the environmental and social pillars and compares how firms in Europe and the United States respond to human rights controversies under different regulatory contexts. The research aims to clarify whether ESG ratings serve as reliable indicators of human rights accountability or primarily reflect corporate disclosure practices.