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

Asiyenur Helhel, Eray Akgun and Yesim Helhel ()
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Asiyenur Helhel: Management School, Faculty of Social Sciences, University of Sheffield, Sheffield S10 2TN, UK
Eray Akgun: Department of Electrical and Electronics Engineering, Faculty of Engineering, Akdeniz University, 07058 Antalya, Türkiye
Yesim Helhel: Tourism Management, Faculty of Tourism, Akdeniz University, 07058 Antalya, Türkiye

Sustainability, 2024, vol. 16, issue 22, 1-20

Abstract: 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.

Keywords: corporate financial performance; ESG; fast-moving consumer good; Kyoto Protocol; North America (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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