Author(s)

Jiahui Wu

Corresponding Author

Jiahui Wu

ABSTRACT

ESG is the abbreviation of environmental, social and corporate governance, which has a positive impact on society, enterprises, regulatory authorities and investors. ESG investment has also attracted more and more attention in recent years. Predicting future ESG stock price trends plays an important role in ESG investment. This paper uses LSTM and ARIMA models to select data of the S&P 500 ESG Index from May 21, 2018, to May 19, 2023 to train the model and make predictions. Finally, MSE and RMSE were used to analyse the accuracy of LSTM and ARIMA model predictions. After analysis, the prediction results of the LSTM model are better than the ARIMA model, and the ARIMA model is simpler to apply.

KEYWORDS

ESG, LSTM, ARIMA, Stock index forecast