Firms, recognizing their Corporate Social Responsibility (CSR), are becoming catalysts for societal change by integrating Environmental, Social and Governance (ESG) criteria into their activities. The fashion industry exemplifies this effort, with an increasing number of companies embracing sustainability and ethical practices. In this context, our purpose is to provide a clear and comprehensive picture of the link between sustainability and business performance in the fashion industry. This work presents a Multivariate Regression Analysis, scrutinizing both external perspectives through stock prices and internal perspectives via profitability indices. Our aim is to discern the intricate relationship between sustainability practices and financial performance within the fashion industry, aligning ESG criteria with long-term economic success. Our regression analysis reveals a significant positive correlation between ESG scores and stock prices, indicating investor recognition of ESG performance as a crucial investment criterion. However, when focusing internally on profitability, the ESG score does not exhibit statistical significance, suggesting a yet-to-be-established connection between ESG policies and corporate profitability. This study underscores the evolving role of companies as sustainability promoters, emphasizing the crucial role of ESG performance in shaping investor perceptions. Nevertheless, it also highlights the need for further exploration into the intricate relationship between sustainable policies and corporate profitability. As businesses increasingly embrace sustainability, in fact, it could become paramount for informed decision-making and fostering ethical societal and environmental progress.

The purpose of this research was to explore the link between Environmental, Social, and Governance (ESG) performance and corporate financial performance in the Pacific Alliance countries (Mexico, Colombia, Peru, Chile). The study used regression models to examine the correlation between ESG scores, environmental pillar scores, and financial performance metrics like return on assets (ROA) and EBITDA for 86 companies over 2016-2022. Control variables like firm size and leverage were included. Data was obtained from Refinitiv and Bloomberg databases. The regression models showed no significant positive correlations between overall ESG or environmental pillar scores and the financial valuation measures.The inconclusive results on ESG-firm value connections underscore the need for continued research using larger samples, localized models, and exploring which ESG aspects drive financial performance Pacific Alliance.