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Original Article | Volume 2 Issue 4 (ACR, 2025) | Pages 309 - 319
Carbon Emission and Consumer Trust: The Influence of Environmental, Social, and Governance Initiatives on Corporate Financial Performance
 ,
1
Department of International Business, National Kaohsiung University of Science and Technology, Taiwan
Under a Creative Commons license
Open Access
Abstract

Climate change, driven largely by carbon dioxide and greenhouse gas (GHG) emissions, has become one of the most pressing global challenges, triggering extreme weather events, biodiversity loss, and rising sea levels. While international agreements such as the Paris Agreement and COP26 have set ambitious targets to limit global warming, the corporate sector plays a critical role in achieving these goals.  Corporate Social Responsibility (CSR) and the Environmental, Social, and Governance (ESG) framework have encouraged firms to integrate sustainability into their operations, aiming not only for regulatory compliance but also for enhanced corporate reputation, consumer trust, and long-term competitiveness. This study investigates the relationship between carbon emissions and financial performance of corporates in Taiwan’s electronics industry, focusing on the top 50 companies by market capitalization from 2018 to 2022. Using data from the Taiwan Economic Journal (TEJ), the Market Observation Post System (MOPS), and company sustainability reports, we conduct statistical analysis and establish multiple linear regression models to analyze the correlations between total carbon emissions (TCE) and financial indicators such as return on equity (ROE) and earnings per share (EPS). The results reveal that high carbon emissions are significantly and negatively associated with both ROE and EPS, suggesting that companies with better ESG initiatives experience operational and reputational advantages. The findings highlight the financial and strategic importance of robust ESG practices, not only for improving efficiency and reducing risk but also for attracting investors and consumers..

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