What Really Explains ESG Performance? Disentangling the Asymmetrical Drivers of the Triple Bottom Line

Why is there such great heterogeneity in environmental, social, and governance (ESG) performance between firms? Drawing inspiration from the locus of literature, we use variance partitioning methods to analyze extent which CEO, firm, industry, year, state effects explain variation ESG over recent decades. Our findings show that internal (i.e., CEO firm) are strongest determinants. Yet, disaggregation multidimensional construct shifts salience factors significantly, revealing importance external environment industry year) explaining concerns. research extends literature our understanding triple bottom line contributes complex determinants firm-level across an array positive negative indicators.