Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)

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Greenwashing or Genuine Impact? Investigating the Link Between ESG Ratings and Financial Performance in the Automobile Industry

Authors
Tianjiao Jin1, *
1D’Amore-McKim School of Business, Northeastern University, 02115, Boston, United States
*Corresponding author. Email: Jin.tianj@northeastern.edu
Corresponding Author
Tianjiao Jin
Available Online 18 June 2026.
DOI
10.2991/978-2-38476-585-0_54How to use a DOI?
Keywords
ESG Ratings; Greenwashing; Automobile Industry
Abstract

As environmental, social, and governance (ESG) investing gains global momentum, ESG ratings have become a key tool for evaluating corporate sustainability. However, growing concerns over “greenwashing”, where firms strategically enhance disclosures to achieve higher ESG scores without substantive improvements, raise doubts about the credibility and economic relevance of these ratings. This study focuses on the automotive industry, known for its high carbon emissions and intense pressure to transition toward sustainability. It systematically examines the relationship between ESG ratings and corporate financial performance, with a particular emphasis on how greenwashing behavior may distort this relationship. By analyzing the interference mechanisms through which symbolic ESG actions affect rating outcomes and market perception, the paper aims to reveal the extent to which ESG ratings reflect actual sustainability efforts versus strategic signaling. The findings contribute to a deeper understanding of ESG rating reliability and offer insights for investors, regulators, and stakeholders seeking to align financial performance with genuine environmental and social progress.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
18 June 2026
ISBN
978-2-38476-585-0
ISSN
2352-5428
DOI
10.2991/978-2-38476-585-0_54How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Tianjiao Jin
PY  - 2026
DA  - 2026/06/18
TI  - Greenwashing or Genuine Impact? Investigating the Link Between ESG Ratings and Financial Performance in the Automobile Industry
BT  - Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)
PB  - Atlantis Press
SP  - 479
EP  - 488
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-585-0_54
DO  - 10.2991/978-2-38476-585-0_54
ID  - Jin2026
ER  -