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

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.