The Influence of ESG Standard on Traditional Stock Index Calculation

A significant number of countries and regions have integrated ESG performance into the calculations of stock indices. There are differences in the performance of major stock indexes and ESG fields in different countries and regions, and whether the index reference ESG performance will be affected. This paper aims to explore the influence the impact of ESG standards on traditional stock indexes. The data of traditional stock index and the ESG stock index were collected from investing.com. Calculate the mean value, standard deviation and unit average rate of return, and then verify through the T-test that there is a significant difference between the average rate of return of the ESG group and that of the traditional stock index group. Finally, it can be concluded that the average rate of return of ESG data is not affected compared with that of the traditional stock index, the standard deviation of ESG data is smaller, that is, its rate of return is more stable, and ESG data has a higher unit risk rate of return, which can prove that its risk is lower.