Carbon Footprint Transparency and Brand Equity through ESG-Driven Value Co-Creation in the Global Skincare Industry
Publication Date : 06-11-2025
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As sustainability increasingly drives consumer choice and brand competitiveness, the global skincare industry must demonstrate authentic environmental commitments beyond superficial green marketing. This study investigates how carbon footprint management influences brand equity through value co-creation mechanisms, addressing a critical gap in sustainable marketing literature where the dynamic pathway from carbon transparency to brand asset building through consumer participation remains theoretically underexplored across cultural contexts. Employing an explanatory sequential mixed methods design, this research integrates quantitative survey data from 600 consumers across North America, Western Europe, and East Asia with qualitative interviews of sustainability executives from leading skincare companies. Structural equation modeling tests hypothesized relationships among carbon footprint transparency, Environmental, Social and Governance perceptions, value co-creation behaviors, brand trust, and brand equity, while multi-group analysis examines cross-cultural moderating effects. Results demonstrate that carbon footprint transparency significantly enhances brand loyalty through brand trust, accounting for 59.7 percent of the total effect, while value co-creation behavior contributes 54.0 percent of the total effect in translating Environmental, Social and Governance practices into brand equity. Cross-cultural analysis reveals that European consumers prioritize environmental dimensions and technical carbon metrics, North American markets emphasize social responsibility and value-based positioning, while East Asian consumers focus on governance aspects, including product safety and certifications. The study identifies a three-stage brand internalization process requiring eight to fourteen months, with significantly higher completion rates among deeply engaged participants. The research advances sustainable marketing theory by constructing an integrated framework explicating psychological pathways linking carbon management to brand assets through value co-creation. For practitioners, findings underscore the imperative of elevating ESG to core brand positioning, designing culturally differentiated communication strategies, and establishing participatory platforms that facilitate consumer engagement from transactional interactions to identity-defining brand relationships.
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