Corporate ESG Transformation : Financial and Managerial Perspectives

This book offers a comprehensive, multidimensional examination of how firms move from symbolic sustainability commitment declarations toward genuine Environmental, Social, and Governance (ESG) transformation.

This book offers a comprehensive, multidimensional examination of how firms move from symbolic sustainability commitment declarations toward genuine Environmental, Social, and Governance (ESG) transformation. It advances ESG scholarship in three key ways. First, it introduces the concept of the ESG transformation gap and proposes an original set of measurement tools that provide a new framework for identifying and addressing discrepancies between firms’ sustainability declarations and their actual practices. Second, it delivers novel evidence on the financial implications of ESG transformation, examining them from both the corporate perspective and that of households as consumers and investors, while also providing rare empirical insights into the relationship between ESG performance and the cost of capital in European markets, particularly in emerging ESG markets in Central and Eastern Europe. Finally, by integrating financial and managerial perspectives, the book bridges theory and practice and translates ESG principles into diagnostic tools and actionable frameworks that support companies and policymakers in managing and financing genuine ESG transformation. The authors provide a robust theoretical and practical framework for policymakers to enhance the effective ESG transformation process, which is a critical enabler for achieving multiple UN Sustainable Development Goals, especially those related to responsible consumption and production, climate action, reduced inequalities, and strong institutions. Firmly grounded in the public policy context, the book will appeal primarily to scholars and researchers working in corporate sustainability, sustainable finance, corporate governance, and strategic management. In particular, this will serve as a valuable resource for those interested in the intersection between ESG disclosure, organizational change, and firm-level value creation.