The agri-food sector is vital to economic development, but it exerts significant environmental and social pressures. This study draws on the Natural Resource-Based View. It investigates the strategic sustainability-performance nexus in the global Food & Beverage industry using a longitudinal dataset (2013-2023) of 633 firms across the EU, US, and China. The multivariate analysis provides novel evidence on the "substance over symbol" debate, revealing a critical dichotomy: while environmental innovation acts as a dynamic capability enhancing ESG scores, green revenues alone do not guarantee superior ratings, exposing a gap between product-level metrics and systemic integration. Empirical findings indicate that financial markets value tangible innovation inputs, specifically R&D and operational efficiency, but do not directly reward ESG scores. This suggests investors prioritize innovation substance over formal disclosure. These findings underscore the need for a strategic shift from mere reporting compliance toward innovation-led sustainability to enhance market value. For policymakers, the results indicate that incentives should prioritize structural R&D and eco-innovation capabilities rather than superficial green labelling to align competitiveness with environmental objectives more effectively.
Bernardo et al. (Thu,) studied this question.