Boo Il Lim

My research questions emerged from the interest concerning green premiums on the properties’ prices. Many researchers revealed green premiums on the properties, but most research showed a negative relationship between the E-pillar score and the assets’ returns despite the surging trend of ESG investing. One of the reasons why the adverse impact of the E component on the assets’ returns is the divergence of ESG ratings due to employing various ESG data, methodologies, and indicators. This has confused financial market participants and led to scepticism of the E pillar score. In addition, compared to the high interest in transition risk and lower carbon emission risk by implementing a strict lower carbon emissions policy, the physical risk of climate change has less attention in industries. However, the significant loss and hazard due to acute and chronic climate events require ESG rating’s progress. Therefore, I will explore the impact of the divergence of the ESG ratings and climate-related risk on the REITs' markets.