TY - JOUR T1 - Sustainable Consumption and Production, Climate Change and Firm Performance JF - The Journal of Impact and ESG Investing SP - 8 LP - 34 DO - 10.3905/jesg.2021.2.2.008 VL - 2 IS - 2 AU - Maretno Agus Harjoto AU - Clemens Kownatzki AU - Jillian Alderman AU - Robert Lee Y1 - 2021/11/30 UR - https://pm-research.com/content/2/2/8.abstract N2 - This article proposes and finds evidence of correlations between a company’s environmental, social, and corporate governance (ESG) score and its sustainable consumption and production and climate change initiatives. Additionally, aligned with the natural resource–based view, the authors hypothesize a positive relationship among sustainable consumption and production, climate action, and company performance. Using Trucost environmental and Paris alignment data, we find that a company’s overall ESG score is aligned with its sustainable consumption production and climate action. The environmental score is aligned, but social and governance scores are negatively related (not aligned) with a company’s sustainable consumption and production and climate action. Additionally, companies’ sustainable consumption and production and climate action offer 0.3%—0.8% annualized excess stock returns and 12.5%—20% higher return on assets (ROA) for a 1% increase in companies’ ability to meet these goals. This article provides insights for asset managers relying on ESG for investment selection and corporate managers attempting to improve their ESG score. ER -