The Impact of ESG Disclosure on Corporate Reputation and Market Response

Xiwen Cao

doi:10.54254/2754-1169/2025.CAU27711

Advances in Economics, Management and Political SciencesOpen access

The Impact of ESG Disclosure on Corporate Reputation and Market Response

Research Article

Open Access

The Impact of ESG Disclosure on Corporate Reputation and Market Response

Xiwen Cao ^1*

¹ Worcester Academy

^*Corresponding author: xiwen.cao@worcesteracademy.org

Published on 14 October 2025

AEMPS Vol.225

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-385-7

ISBN (Online): 978-1-80590-386-4

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Abstract

This paper examines how different ESG (Environmental, Social, and Governance) disclosure strategies impact corporate reputation and market response by analyzing three major companies: Tesla, Microsoft, and ExxonMobil. Tesla employs detailed sustainability reports emphasizing environmental metrics, which bolster investor confidence but face criticism for neglecting social and governance aspects. Microsoft adopts a strategic approach, announcing bold, measurable goals like carbon negativity, enhancing its ESG leadership image and attracting investor trust. ExxonMobil discloses operational ESG adjustments, such as carbon capture investments, but mixed market reactions and skepticism arise due to unclear long-term alignment and perceived greenwashing. Key findings reveal that effective ESG communication requires clarity, credibility, and balance across all three pillars. Companies aligning ESG disclosures with core business values (e.g., Tesla’s environmental focus, Microsoft’s holistic strategy) gain stronger stakeholder trust, while fragmented or reactive efforts (e.g., ExxonMobil’s operational shifts) risk reputational damage. The study underscores that ESG disclosure is not merely about transparency but also strategic integration into long-term business models. Future research should explore long-term ESG impacts across industries and the role of third-party ratings in shaping investor perceptions. Overall, well-executed ESG communication enhances reputation, investor appeal, and sustainability preparedness.

Keywords:

ESG Disclosure Impact, Corporate Reputation Strategies, Investor Response Analysis.

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References

[1]. Tesla, Inc. (2022). Tesla 2022 Impact Report. Retrieved from https: //www.tesla.com/impact

[2]. Almendral, A. (2023, May 4). Tesla is finally disclosing the full extent of its carbon emissions. Quartz. Retrieved from https: //qz.com/tesla-is-finally-disclosing-the-full-extent-of-its-carb-1850403101

[3]. Microsoft. (2020, January 16). Microsoft will be carbon negative by 2030. Microsoft Blog. Retrieved from https: //blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/

[4]. Microsoft. (2025, February 13). Progress on the road to 2030. Microsoft On the Issues. Retrieved from https: //blogs.microsoft.com/on-the-issues/2025/02/13/progress-on-the-road-to-2030/

[5]. ExxonMobil. (2021, November 9). Why we’re investing $15 billion in a lower‑carbon future. Retrieved from https: //corporate.exxonmobil.com/sustainability-and-reports/sustainability

[6]. ExxonMobil. (n.d.). Carbon capture and storage & reducing emissions. Retrieved from https: //corporate.exxonmobil.com/what-we-do/delivering-industrial-solutions/carbon-capture-and-storage/carbon-capture-storage-slice-and-dice

[7]. Microsoft. (2024, May 15). Our 2024 Environmental Sustainability Report. Microsoft On the Issues. Retrieved from https: //blogs.microsoft.com/on-the-issues/2024/05/15/microsoft-environmental-sustainability-report-2024/

[8]. TeslaNorth.com. (2023, April 24). Tesla’s 2022 Impact Report: Paving the Way for a Sustainable Future. Retrieved from https: //www.teslanorth.com/2023/04/24/tesla-2022-impact-report/

[9]. Sustainalytics. (2023). ESG Risk Ratings. Retrieved from https: //www.sustainalytics.com/esg-ratings

[10]. Bloomberg. (2024). Microsoft Wanted to Be Carbon Negative. Then it Went Big on AI. Bloomberg News. Retrieved from https: //www.bloomberg.com/news/audio/2024-05-22/microsoft-wanted-to-be-carbon-negative-then-it-went-big-on-ai

References

[1]. Tesla, Inc. (2022). Tesla 2022 Impact Report. Retrieved from https: //www.tesla.com/impact

[3]. Microsoft. (2020, January 16). Microsoft will be carbon negative by 2030. Microsoft Blog. Retrieved from https: //blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/

[4]. Microsoft. (2025, February 13). Progress on the road to 2030. Microsoft On the Issues. Retrieved from https: //blogs.microsoft.com/on-the-issues/2025/02/13/progress-on-the-road-to-2030/

[5]. ExxonMobil. (2021, November 9). Why we’re investing $15 billion in a lower‑carbon future. Retrieved from https: //corporate.exxonmobil.com/sustainability-and-reports/sustainability

[8]. TeslaNorth.com. (2023, April 24). Tesla’s 2022 Impact Report: Paving the Way for a Sustainable Future. Retrieved from https: //www.teslanorth.com/2023/04/24/tesla-2022-impact-report/

[9]. Sustainalytics. (2023). ESG Risk Ratings. Retrieved from https: //www.sustainalytics.com/esg-ratings

Cite this article

Cao,X. (2025). The Impact of ESG Disclosure on Corporate Reputation and Market Response. Advances in Economics, Management and Political Sciences,225,37-44.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Resilient Business Strategies in Global Markets

ISBN: 978-1-80590-385-7(Print) / 978-1-80590-386-4(Online)

Editor: Florian Marcel Nuţă Nuţă, Li Chai

Conference website: https://2025.icemgd.org/CAU.html

Conference date: 20 September 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.225

ISSN: 2754-1169(Print) / 2754-1177(Online)

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