Search Results (337)

This article explores the relationship between corporate financial performance (CFP) and commitment to ESG (environmental, social and governance) practices, using a sample of companies listed on the S&P 500 and TSX 60 indices. By employing a linear regression model, the study examines how financial indicators such as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), return on assets (ROA), Assets and Debt influence ESG scores. The results show that financial indicators such as EBITDA, ROA and Assets are positively associated with increased ability to commit resources to ESG practices, except in some cases like when costs associated with ESG initiatives can reduce the competitiveness and profitability of companies in the short term, where ROA is negatively correlated with the adoption of ESG criteria. Also, with regard to the size of companies, thanks to their greater resources, larger companies are more inclined to adopt ESG criteria. These findings enhance the understanding of financial conditions that enable or constrain ESG adoption and provide managerial insights for strategic resource allocation in the pursuit of sustainability goals. Full article

To integrate rapidly growing environmental, social, and governance (ESG) investments into agribusiness, it is essential to understand the decision-making mechanisms behind sustainable practices in small- and medium-sized farms. This study examines the role of corporate governance in promoting sustainable practices using structural equation modeling on survey data from 1111 Japanese farms. The results reveal that internal social sustainability practices, such as improving the work environment and employee well-being, are positively associated with corporate governance and, in turn, significantly enhance sales growth, cash flow, and succession prospects. In contrast, external social sustainability practices show a negative correlation with governance, reflecting the influence of socioemotional wealth and reputation-driven decision-making. Environmental sustainability practices correlate only with sustainable corporate governance, suggesting a lack of strategic integration. These findings underscore the importance of corporate governance as a factor in linking sustainable initiatives to economic outcome. Strengthening internal social sustainability through robust corporate governance is therefore critical for farmers aiming to improve performance through sustainability. Moreover, given that family management preferences shape sustainability choices, policymakers must consider both governance and socioemotional factors to effectively support agricultural sustainability. Full article

Environmental, Social, and Governance (ESG) performance has emerged as a critical indicator of corporate legitimacy, resilience, and long-term value. However, translating ESG strategic intent into tangible results remains a pressing theoretical and managerial challenge. This paper introduces an integrated framework elucidating the pathways through which Corporate Citizenship (CC), understood as a participatory, relational evolution of Corporate Social Responsibility (CSR), influences ESG outcomes at the employee level. Drawing on both Social Exchange Theory (SET) and Social Identity Theory (SIT), the model explains how reciprocal obligations and identity-based alignment jointly influence employees’ discretionary behaviors. Perceived Organizational Support (POS) is introduced as a moderating factor that shapes the strength of the CC–OCB pathway. This study contributes to the micro-foundations of ESG by illuminating how individual discretionary behaviors mediate and condition the impact of strategic corporate citizenship initiatives. By advancing a dual-theoretical, micro-foundational approach, the framework moves beyond reputational CSR models and provides a testable, behaviorally anchored account of ESG implementation. Practical implications are offered for organizations seeking to cultivate trust-based cultures that align employee engagement with sustainable performance. Full article

Climate change poses an existential threat, spurring businesses and financial markets to integrate environmental accounting and ESG (Environmental, Social, and Governance) disclosures into decision-making. This study aims to examine how environmental accounting practices and ESG reporting contribute to climate change mitigation in organizations. It seeks to highlight the significance of these tools in enhancing transparency and accountability, thereby driving more sustainable corporate behavior. By synthesizing the recent literature, the study contributes a comprehensive overview of best practices and challenges at the intersection of accounting and climate action, addressing a noted gap in consolidated knowledge. We conducted a systematic literature review (SLR) following PRISMA guidelines. A broad search (2010–2024) across Scopus, Web of Science, and Google Scholar identified 73 records, which were rigorously screened and distilled to 47 relevant peer-reviewed studies. These studies span global contexts and include both conceptual and empirical work, providing a robust dataset for analysis. Environmental accounting was found to play a pivotal role in measuring and managing corporate carbon footprints, effectively translating climate impacts into quantifiable metrics. Firms that implement rigorous carbon accounting and internalize environmental costs tend to set more precise emission reduction targets and justify mitigation investments through a cost–benefit analysis. ESG disclosure frameworks emerged as critical external tools: a high-quality climate disclosure is linked with greater stakeholder trust and even financial benefits such as lower capital costs. Leading companies aligning reports with standards like TCFD or GRI often enjoy enhanced credibility and investor confidence. However, the review also uncovered challenges, like the lack of standardized reporting, risks of greenwashing, and disparities in adoption across regions, that impede the full effectiveness of these practices. The findings underscore that while environmental accounting and ESG reporting are powerful means to drive corporate climate action, their impact depends on improving consistency, rigor, and integration. Harmonizing global reporting standards and mandating disclosures are identified as key steps to improve data comparability. Strengthening the credibility of ESG disclosures and embedding environmental metrics into core decision-making are essential to leverage accounting as a tool for climate change mitigation. The study recommends that policymakers accelerate moves toward mandatory, standardized ESG reporting and urges organizations to proactively enhance their environmental accounting systems that will support global climate objectives and further research on actual emission outcomes. Full article

In the digital era, online search patterns provide a practical way to track changes in the public interest in sustainability. This study analyzes monthly Google Trends data in the United States (January 2019–December 2024) for five keywords: two institutional (“ESG”, “carbon neutral”), and three consumer-oriented (“eco friendly”, “zero waste”, and “plastic free”). Drawing on agenda-setting theory and the diffusion-of-innovations framework, we test the directional links between institutional and consumer attention. The methods include Granger causality tests, impulse response functions, and cross-correlation analysis. The findings reveal a consistent lead–lag structure in which institutional terms precede consumer-oriented searches, but the timing and persistence of influence vary across concepts. A broad discourse such as ESG produces slower, yet more sustained, effects, whereas action-oriented concepts like carbon neutrality generate quicker but shorter-lived responses. Seasonal analysis also shows recurring peaks in consumer interest around events such as Earth Day and Plastic-Free July, underscoring the cyclical nature of attention to sustainability. By integrating communication theory with multi-year digital trace data, this study provides evidence of how institutional messaging diffuses into consumer behavior, while highlighting the roles of timing and message framing. The results contribute to sustainability communication research and offer practical insights for policymakers, NGOs, and marketers relevant to aligning campaigns with evolving public attention. Full article

As sustainable development gains importance, corporate ESG performance has become a key factor in investment decisions and long-term business growth. Drawing on upper echelon theory and stakeholder theory, this study examines the impact of executives with overseas backgrounds on ESG performance using data from A-share listed companies in Shanghai and Shenzhen from 2010 to 2022. The findings show that: (1) Executives with overseas backgrounds significantly enhance ESG performance; (2) this effect operates through three main channels—promoting corporate green technology innovation, improving the quality of corporate internal control, and enhancing the level of corporate risk-taking—while digital transformation positively moderates the relationship; (3) the effect is more pronounced in non-polluting, manufacturing, capital-intensive, and technology-intensive firms. This study clarifies the internal mechanisms by which executive backgrounds influence ESG outcomes and offers insights into enhancing ESG practices to support China’s “dual carbon” goals. Full article

The registration system reform (RSR) represents a landmark innovation in China’s IPO system, aiming to promote a more transparent, competitive, and sustainable market. Exploiting the staggered implementation of RSR as a quasi-natural experiment, we employ a difference-in-differences (DID) model using a sample of Chinese A-share IPO firms from 2016 to 2022 to investigate its impact on corporate sustainability, as proxied by environmental, social, and governance (ESG) performance. Our findings indicate that RSR significantly enhances corporate ESG performance, especially the governance (G) performance. Mechanism analysis suggests that market competition, investor rationality, and sponsor reputation are potential channels through which the reform facilitates corporate sustainability. Furthermore, the above relationship is more pronounced in regions with a higher degree of marketization, among non-state-owned enterprises, and those with weaker profitability. Moreover, the reform not only exhibits long-term effects but also demonstrates positive spillover effects on peer firms originally listed under the approval-based system. Overall, our study extends the understanding of how capital market institutional reforms promote corporate sustainability in the era of the digital economy and provides valuable insights for regulators to standardize and enhance RSR, thereby establishing a resilient and sustainable financial ecosystem. Full article

Can supply chain strategies, ESG practices, and digital innovations be the game-changers the planet needs for a sustainable future? Motivated by this question, this study investigates the drivers of CO₂ emissions, focusing on supply chain management (GSC), ESG sustainability practices, and Information and Communication Technology (ICT) in China from 2002Q4 to 2024Q4. Utilizing a series of wavelet tools—including wavelet coherence (WTC), partial wavelet coherence (PWC), and multiple wavelet coherence (MWC)—the study uncovers associations across time and frequency domains. To the best of the authors’ knowledge, this is the first study to examine these dynamics within the Chinese context using advanced wavelet techniques. The WTC results reveal that GSC, ICT, and patents are positively associated with CO₂ emissions, particularly during 2008–2016 and 2018–2024, while ESG practices reduced emissions before 2016 but became positively linked to emissions afterward. MWC and PWC analyses confirm that these drivers influence CO₂ within 1–4-year bands, while wavelet Granger causality tests indicate weak short-term but strong medium- to long-term causal relationships among ESG, GSC, PAT, ICT, and CO₂ emissions. Based on these results, policy recommendations are formulated. Full article

This study examines the impact of environmental, social, and governance (ESG) practices on green innovation and financial performance among 174 publicly listed firms across ASEAN countries over the period from 2019 to 2023. Utilizing an unbalanced panel dataset of firms from key ASEAN economies, the analysis employs panel regression techniques. Green innovation performance is measured through innovation disclosures related to environmental technologies, while financial success is assessed via return on assets (ROA) and Tobin’s Q. The findings reveal that environmental and governance disclosure scores positively influence green innovation, whereas social scores exert a more immediate impact on financial performance. Moreover, green innovation is found to partially mediate the relationship between overall ESG practices and long-term market valuation. These results highlight the strategic role of ESG transparency in enhancing innovation-driven competitiveness, responsible business conduct, and sustainable employment across Southeast Asian markets. Implications are discussed for corporate managers, policymakers, and socially responsible investors. The study reinforces the case for ESG-aligned strategy as a pathway to both innovation, inclusive economic growth, and long-term competitiveness in ASEAN markets. Full article

Port resilience performance (PRP) is a critical factor in advancing the sustainable development of the 21st Century Maritime Silk Road (MSR). The Environmental, Social, and Governance (ESG) framework, widely recognized as a cornerstone of global sustainability efforts, offers a robust foundation for enhancing PRP. This study employs a system dynamics (SD) approach to explore the impact of ESG on PRP along the MSR. By developing an ESG evaluation index system and a resilience assessment framework, the research examines the mechanisms and evolutionary patterns through which ESG influences port resilience. Simulations are conducted for four strategic ports: Chattogram Port, Singapore Port, Gwadar Port, and Djibouti Port. The findings reveal that ESG initiatives significantly enhance PRP, with Singapore Port exhibiting the most stable and rapid resilience improvement. In contrast, the other ports demonstrate varying levels of adaptation and enhancement. Among the intervention strategies, prioritizing social dimension (S) improvements proves most effective for achieving rapid short-term resilience gains. This study offers both theoretical insights and practical strategies for strengthening port resilience and fostering sustainable development along the MSR. Full article

This study examines the impact of overall Environmental, Social, and Governance (ESG) performance and its pillars on the default probability of Australian-listed firms. Using a panel dataset spanning 2014 to 2022 and applying the Generalized Method of Moments (GMM) regression, we find that firms with higher ESG scores exhibit a significantly lower likelihood of default. Disaggregating the ESG components reveals that the Environmental and Social pillars have a negative association with default risk, suggesting a risk-mitigating effect. In contrast, the Governance pillar demonstrates a positive relationship with default probability, which may reflect potential greenwashing behavior or an excessive focus on formal governance mechanisms at the expense of operational and financial performance. Furthermore, the analysis identifies trade credit financing (TCF) as a partial mediator in the ESG–default risk nexus, indicating that firms with stronger ESG profiles rely less on external short-term financing, thereby reducing their default risk. These findings provide valuable insights for corporate management, investors, regulators, and policymakers seeking to enhance financial resilience through sustainable practices. Full article

This research examines the cognitive and psychological mechanisms underlying young adults’ reactions to ESG-labeled online advertisements, specifically resistance to persuasion and purchase intention. Based on dual-process theories of persuasion and digital literacy theory, we develop and test a structural equation model (SEM) of perceived greenwashing, online advertising literacy, source credibility, persuasion knowledge, and advertising skepticism as predictors of behavioral intention. Data were gathered from 690 Greek consumers between the ages of 18–35 years through an online survey. All the direct effects hypothesized were statistically significant, while advertising skepticism was the strongest direct predictor of purchase intention. Mediation tests indicated that persuasion knowledge and skepticism partially mediated perceptions of greenwashing, literacy, and credibility effects, in favor of a complementary dual-route process of ESG message evaluation. Multi-group comparisons revealed significant moderation effects across gender, age, education, ESG familiarity, influencer trust, and ad-avoidance behavior. Most strikingly, women evidenced stronger resistance effects via persuasion knowledge, whereas younger users and those with lower familiarity with ESG topics were more susceptible to skepticism and greenwashing. Education supported the processing of source credibility and digital literacy cues, underlining the contribution of informational capital to persuasion resilience. The results provide theoretical contributions to digital persuasion and resistance with practical implications for marketers, educators, and policymakers seeking to develop ethical ESG communication. Future research is invited to broaden cross-cultural understanding, investigate emotional mediators, and incorporate experimental approaches to foster consumer skepticism and trust knowledge in digital sustainability messages. Full article

This study presents the Wood Protection Sustainability Index (WPSI), a novel decision-support tool aimed at evaluating wood preservatives utilized in Chile and facilitating a shift toward more sustainable wood protection practices. WPSI encompasses four essential attributes: protection treatment, wood durability, in-service risk, and sustainability. These are assessed under two distinct scenarios. Scenario 1 represents current market practices, where chromated copper arsenate (CCA) remains prevalent due to its accessibility and affordable cost. In contrast, Scenario 2 prioritizes sustainability, demonstrating that copper azole (CA) and alkaline copper quaternary (ACQ) surpass CCA in performance, with CCA ranking lowest due to its environmental implications. Furthermore, a SWOT analysis accompanies the index, identifying key challenges and opportunities within Chile’s wood preservation industry. The findings highlight the importance of aligning national strategies with Environmental, Social, and Governance (ESG) frameworks, as well as the Sustainable Development Goals (SDGs), through performance-based regulations and safer alternatives. The WPSI can be integrated with local standards, regional risk classifications, and national preservative approval systems, allowing for meaningful comparison across diverse global contexts. This approach promotes more sustainable construction practices while ensuring both technical and economic viability. Full article

Portfolios incorporating environmental, social, and governance (ESG) criteria present distinct, unobserved risks, the empirical quantification of which has proven challenging. This difficulty stems from sustainable investment strategies being guided by both financial objectives and investors’ non-pecuniary preferences, which fundamentally alter a portfolio’s risk and return characteristics. To address this, we propose a novel methodology that identifies latent, ESG-specific risk factors by applying sparse principal component analysis (SPCA) to two-dimensional portfolio returns. Unlike approaches that rely on subjective judgment, our method extracts risk dimensions inherent to the return data itself. Our analysis reveals that the resulting firm-specific SPCA beta plays a dual role: it explains performance differentials across ESG-rated portfolios and exhibits a statistically significant, negative association with expected individual stock returns. The robust predictive performance of this SPCA-based risk factor confirms its practical utility for analyzing and managing diversification in ESG investing. Full article

This paper presents a novel framework for valuing ESG-based collaborative synergies in cross-border mergers and acquisitions (M&A) using a real options approach, with a specific application to L’Oréal’s acquisition of Aesop. The methodology integrates a Value-at-Risk (VaR) model to quantify and adjust for ESG-related risks, providing a more robust valuation framework. We demonstrate how linking sustainability practices with real option valuation in multinational corporations (MNCs) can enhance long-term value creation and reduce risk, thereby aligning synergy goals with ESG objectives. By applying our VaR-adjusted model to the L’Oréal–Aesop case, this study contributes to corporate finance by integrating advanced risk management and sustainability into synergy valuation, and to international business by providing an empirical example of this integrated valuation approach for cross-border acquisitions. Full article