Abstract
Environmental, social, and governance (ESG) practices have gained substantial attention as an indicator of corporate sustainability and long-term value creation. This study develops a novel empirical framework to explore the heterogeneity in the financial aspects of ESG engagement across regions, industries, and firms. Drawing on 50,000 firm-year observations (2002-2022), across seven regions and 23 industries, we quantify the financial impact of ESG and its subcomponents across institutional contexts. Our findings show that ESG has a particularly strong positive impact on revenue in developing and institutionally weaker markets, suggesting its role in filling institutional voids. Although the industry-level variation is insignificant, regional heterogeneity is substantial. Disaggregated analysis of ESG pillars shows that environmental and social pillars have a positive impact on revenue growth, though varying by region. This research contributes to the ESG literature by offering a multilevel perspective to guide strategic investment, stakeholder engagement, and sustainable operations.