We examine whether extra-financial ratings are related to the probability of occurrence of adverse environmental, social and governance (ESG) events, and thus serve as an indicator of ESG-risk. We observe that a firm's global extra-financial performance is negatively related to its likelihood of dealing with adverse ESG-related events. However, for some CSR dimensions, the link between overall performance (strengths and concerns) and risk is positive, which is consistent with a compensation effect. We also observe an cross-dimensional effect whereby extra-financial performance in a specific CSR dimension can affect the probability of occurrence of adverse events associated with other dimensions. Results are robust to a number of tests.

我们研究了额外财务评级是否与不利的环境、社会和治理 (ESG) 事件发生的概率相关，从而作为 ESG 风险的指标。我们观察到一家公司的全球额外财务业绩与其处理不利 ESG 相关事件的可能性呈负相关。然而，对于某些 CSR 维度，整体绩效（优势和关注点）与风险之间的联系是积极的，这与补偿效应是一致的。我们还观察到跨维度效应，即特定 CSR 维度的额外财务绩效会影响与其他维度相关的不良事件发生的概率。结果对许多测试都是稳健的。