Did ESG Affect the Financial Performance of North American Fast-Moving Consumer Goods Firms in the Second Period of the Kyoto Protocol?

Helhel A., Akgun E., Helhel Y.

SUSTAINABILITY, cilt.16, sa.22, ss.1-20, 2024 (SCI-Expanded)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 16 Sayı: 22
  • Basım Tarihi: 2024
  • Doi Numarası: 10.3390/su162210009
  • Dergi Adı: SUSTAINABILITY
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, Aerospace Database, Agricultural & Environmental Science Database, CAB Abstracts, Communication Abstracts, Food Science & Technology Abstracts, Geobase, INSPEC, Metadex, Veterinary Science Database, Directory of Open Access Journals, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.1-20
  • Akdeniz Üniversitesi Adresli: Evet

Özet

Many agreements and protocols in the global framework call on industries and businesses to respond to threats related to climate change. New terminologies such as environmental, social, and governance (ESG) scores address this issue and responsibility. This study investigates the impact of sustainability (environment (ENV), social (SOC), governance (GOV), and ESG) on the financial performance of firms in the fast-moving consumer goods industry from 2013 to 2020, the second commitment period of the Kyoto Protocol (SCKP). The study sample covers 113 firms in the North American region (the USA and Canada did not participate in SCKP). The results showed that ESG is not an influencer of financial performance, while ENV and SOC components negatively affect financial performance. On the other hand, GOV is the most significant influencer that positively impacts financial performance. Based on these findings, ESG and its components are not conducive to promoting financial performance during the SCKP period. However, fast-moving consumer goods are ahead of other sectors in terms of sustainability disclosure. Moreover, the highest positive impact of GOV is attributed to the advanced system with rules, standards, and regulations that foster the better and more efficient governance of firms from developed countries