ESG Reporting and Consumer Product Choice – Evaluating Corporate Sustainability Branding in Fast Moving Consumer Goods

Abstract

A conjoint-based study was conducted with identical chocolate bars displaying varying sustainability labels and prices. The study distinguishes between a state-certified ESG label and a third party, privately organized ESG label. Analyzing respondents' behavior, the willingness-to-pay of the different labels are estimated. ESG labels have the highest importance for consumers, followed by the Organic and the Fairtrade label. The premium respondents are willing to pay is reduced if too many labels are displayed together. The results remain robust across gender, age, and income, pointing to the importance for companies to incorporate ESG labels and policymakers to institutionalize ESG labelling.