ESG performance: Does it pay back in terms of corporate brand value?

Frame of the research: This study contributes to various research domain of interests, such as branding and corporate branding, corporate governance, ESG and, more in general, sustainability and society well-being. Purpose of the paper: This paper advances hypotheses linking the corporate brand value to the ESG performance. Methodology: The study tests hypothesis by applying linear regressions on cross-sectional 2021 data, built on the corporate brand value of the world’s top leading brands, whose ESG score has been retrieved from the Refinitiv™ database. In particular, the corporate brand value has been operationalised by means of the Interbrand listing. Results: Findings show a positive relationship between the corporate brand value and the ESG social dimension, whereas the impact of the other ESG dimensions have been found not significant. Moreover, findings shed light on the positive link between the corporate brand value and ESG controversies, moderated by the social dimension. Research limitations: this paper is based on a sample retrieved from the 2021 Interbrand listing, with the related 2021 Refinitiv™ data, hence further studies are needed to investigate longitudinal effects stemming from the link between corporate brand value and ESG performance. Managerial implications: Corporate managers should be aware of the specific effects of each ESG factor on the overall brand value. However, in parallel with a more focalized view on ESG dimensions, we also suggest a holistic approach to ESG management and branding, for instance by creating an ESG Global Brand Business Unit. Originality of the paper: This is the first study that links the value of leading global corporate brands to their ESG performance using Refinitiv™.