Sustainability Pays Off: Investigating the Impact of ESG Scores on Corporate Financial Performance Worldwide

The study analyzes a comprehensive dataset across various companies, industries, and countries, employing rigorous econometric techniques. The findings reveal a statistically significant and positive relationship between lagged ESG scores and financial performance, persisting over time and across diverse contexts. The robustness of the results highlights the importance of sustainability for companies worldwide. Additionally, the study explores the underlying mechanisms through which ESG factors influence financial performance. These findings have crucial implications for investors looking to integrate ESG considerations into their strategies and for companies striving to enhance their sustainability practices and achieve long-term financial success in an increasingly responsible business landscape. The research emphasizes the enduring and beneficial association between ESG scores and financial performance, urging the adoption of sustainable practices on a global scale.