Exploring the Link Between ESG Integration and Financial Performance: A Quantitative Meta-Analysis

Abstract

This study presents a meta-analysis of the relationship between Environmental, Social, and Governance (ESG) indicators and corporate financial performance. In recent years, ESG criteria have become a key factor in investment decisions and strategic management. However, empirical studies on the financial implications of ESG performance have yielded mixed.
We analyzed 37 peer-reviewed empirical studies published between 2014 and 2024, covering various sectors and regions. Using a random-effects model, we calculated a combined effect size to estimate the overall relationship between ESG and financial performance measures such as ROA and ROE.

The study confirms a positive relationship between ESG performance and financial outcomes, particularly in developed markets and environmentally sensitive sectors. It demonstrates that ESG engagement promotes value creation despite certain methodological limitations. Despite some publication bias and methodological heterogeneity, the study shows that ESG engagement is compatible with value creation.