How do ESG factors in e-commerce influence consumers?

Since the COVID-19 pandemic, online shopping has become an essential part of modern life. Additionally, with the increasing impacts of climate change and natural disasters, the principles of Environmental, Social, and Governance (ESG) have evolved into a concept of enduring value rather than a passing trend. Despite the growing importance of ESG in business practices, most existing research examines its effects on financial performance and market value from the perspective of investors. However, there is a lack of studies examining how ESG factors influence consumer behavior, particularly in the context of online shopping. This study aims to explore the impact of ESG on the online shopping experience, particularly examining how the ESG activities of e-commerce platforms influence the purchase decisions and loyalty of consumers towards brands that sell products on these platforms. We collected data from 400 respondents and analyzed it using structural equation modeling (SEM). The results indicate that the social aspect of ESG activities by the platform significantly enhances platform loyalty, while the environmental and governance aspects do not show a significant impact. On the other hand, the environmental aspect of ESG activities by the brands significantly impacts platform loyalty, while the social and governance activities do not. Furthermore, platform loyalty significantly influences both platform purchase intention and brand purchase intention, while brand loyalty significantly enhances brand purchase intention but not platform purchase intention. These findings offer valuable insights for both academic research and practical applications in the e-commerce sector, and emphasize the importance of ESG initiatives in driving consumer behavior. This study fills a critical gap in the literature by by demonstrating the role of ESG factors in shaping consumer attitudes and behaviors in the digital marketplace, and it highlights how consumers play a crucial role in driving the adoption of sustainable practices.