Derrien et al (2022)

Derrien, François, Philipp Krüger, Augustin Landier, and Tianhao Yao. “ESG News, Future Cash Flows, and Firm Value.” Swiss Finance Institute Research Paper No. 21-84, October 2022.

From the authors' abstract:  "We investigate the expected consequences of negative ESG news on firms' future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affect forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news reflect expectations of lower future sales (rather than higher future costs). Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news and ESG sensitive analysts tend to provide more accurate forecasts.” 

Link:  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3903274