Deciphering the ESG-Performance Conundrum. An Analysis of the Relationship and Causality in Corporate Financial Performance

The study explores the complex relationship between company performance and environmental, social, and governance (ESG) strategies, highlighting the ongoing debate in existing literature. While some research indicates that ESG can enhance corporate sustainability and attract investment, other studies present conflicting evidence or find no significant correlation. By examining various performance indicators, this thesis concludes that neither company performance significantly affects ESG nor vice versa, providing new insights into this contentious area of business economics.