Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data

49 Pages Posted: 29 Oct 2022 Last revised: 1 Nov 2023

See all articles by Jean-Marie Meier

Jean-Marie Meier

The Wharton School, University of Pennsylvania; University of Texas at Dallas - Naveen Jindal School of Management

Henri Servaes

London Business School; Centre for Economic Policy Research (CEPR)

Jiaying Wei

Southwestern University of Finance and Economics

Steven Chong Xiao

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: July 24, 2023

Abstract

Using granular barcode-level sales data from retail stores, we show that environmental and social
(E&S) ratings are positively related to local sales, especially in counties with more Democratic-
leaning and higher-income households. Higher ratings of a firm’s product market rivals negatively
affect a firm’s own sales. Controlling for product-year-level heterogeneity, monthly product sales
decline after negative firm news on E&S issues. Finally, immediately after major natural and
environmental disasters, sales in counties located close to the disasters become more sensitive to
environmental ratings. Our study provides direct evidence that E&S activities affect consumer
demand–the cash flow channel of ESG.

Keywords: Retail, ESG, Corporate Social Responsibility

JEL Classification: D12, G32, M14

Suggested Citation

Meier, Jean-Marie and Servaes, Henri and Wei, Jiaying and Xiao, Steven Chong, Do Consumers Care About ESG? Evidence from Barcode-Level Sales Data (July 24, 2023). European Corporate Governance Institute – Finance Working Paper No. 926/2023, Available at SSRN: https://ssrn.com/abstract=4260716 or http://dx.doi.org/10.2139/ssrn.4260716

Jean-Marie Meier

The Wharton School, University of Pennsylvania ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://www.jean-mariemeier.com

University of Texas at Dallas - Naveen Jindal School of Management ( email )

Jindal School of Management
800 W. Campbell Road
Richardson, TX 75080
United States

HOME PAGE: http://www.jean-mariemeier.com/

Henri Servaes

London Business School ( email )

Sussex Place
Regent's Park
London NW1 4SA
United Kingdom
+44 20 7000 8268 (Phone)
+44 20 7000 8201 (Fax)

HOME PAGE: http://faculty.london.edu/hservaes/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Jiaying Wei

Southwestern University of Finance and Economics ( email )

Chengdu
China

Steven Chong Xiao (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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