Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data

Jean-Marie Meier, Henri Servaes, Jiaying Wei and Steven Chong Xiao

No 18379, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using granular barcode-level sales data from retail stores, we show that environmental and social ratings are positively related to local sales, especially in counties with more Democratic-leaning and higher-income households. Higher ratings of a firm’s product market rivals negatively affect a firm’s own sales. Controlling for product-year-level heterogeneity, monthly product sales decline after negative firm news on environmental and social issues. Finally, immediately after major natural and environmental disasters, sales in counties located close to the disasters become more sensitive to environmental ratings. Our study provides direct evidence that environmental and social activities affect the revenues of a firm.

Keywords: Retail; ESG (search for similar items in EconPapers)
JEL-codes: D12 G32 M14 (search for similar items in EconPapers)
Date: 2023-08
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