ESG Ratings and Financial Performance in the U.S. Food Manufacturing Industry


Presenter: Joe Collins

Faculty Sponsor: Muzzo Uysal

School: UMass Amherst

Research Area: Accounting

Session: Poster Session 1, 10:30 AM - 11:15 AM, Auditorium, A83

ABSTRACT

The food manufacturing industry is a major sector of the United States economy. The growth of commodities driven by human expansion has tapped into multiple natural resources to produce raw food materials. Manufacturing functions as the critical bridge connecting agriculture to today’s consumers, ensuring a reliable food supply while enabling the growth of industry. The decision to focus on the food manufacturing industry stems from the lack of attention to emissions produced by this competitive and crucial sector. This study examines the relationship between ESG (Environmental, Social, and Governance) scores and financial performance within the U.S. food manufacturing industry. A secondary research method is used through the compilation of publicly available historical data. Data collected from the Bloomberg Terminal, gathering ESG scores and 10-K financial statements. The population of selections consists of publicly traded companies domestic to the United States classified under NAICS 311. Analysis methods include qualitative and statistical measures. Qualitative methods will be leveraged to discover descriptive trends for each aspect of Environmental, Social, and Governance scores. Statistical analysis will evaluate the correlation between ESG scores and financial performance. Research aims to provide a deeper exploration into the U.S. food manufacturing industry and the effects of sustainable policies in the industry to further understand ESG performance and financial outcomes.