ESG: THE NEW CURRENCY OF BRAND VALUE

Purpose: This study aims to assess the impact of ESG (Environmental, Social and Governance) performance on the determination of brand value, considering both its aggregate influence and the effects of its individual subdimensions.Design/methodology/approach: The hypothesis that environmental, social, and governance practices enhance brand value is tested.The study uses regression and correlation analyses to evaluate the relationship between Brandfinance Global 500 brand values, S&P Global ESG scores, financial variables, and enterprise value over the period 2013-2023.Findings: The results of multiple regression analyses indicate that assets and enterprise value positively influence brand value, while, contrary to expectations, the overall ESG score exerts a negative effect.The analysis of ESG subdimensions reveals varying impacts: the environmental dimension positively correlates with brand value, the governance dimension exhibits a negative relationship, and the social dimension shows no statistically significant relationship.Practical implications: The findings emphasize the need for a more nuanced and critical approach to ESG evaluation.Stakeholders should focus on the quality and authenticity of ESG practices, rather than simply relying on aggregate scores.This research encourages a shift towards a more sustainable and responsible business environment.Social implications: he research highlights the disconnect between perceived ESG performance and actual brand value, raising concerns about the authenticity and effectiveness of current ESG practices.This has far-reaching social implications, impacting investor behavior, corporate governance, consumer expectations, and regulatory policies.Originality/value: This study is expected to add to the scarce research that examines the connection between brand value and ESG performance.By elucidating the relationships within the brand value-firm value-ESG score framework, the findings are expected to significantly influence the strategic decisions of corporate, brand and financial managers.