Do Corporate ESG Disclosures Drive Consumer Demand (Sales)? The Role of Environmental Sensitivity

The question of whether strong environmental, social, and governance (ESG) disclosure largely benefits high‐demand customers or if it generates value across all sales levels is yet to be empirically verified. This study, therefore, examines how ESG performance influences consumer demand (sales outcomes) among listed firms across African emerging markets from 2011 to 2024. Using an integrated innovative quantile framework, the results reveal a nonlinear and asymmetric ESG–sales relationship: ESG improves baseline sales and returns in lower and median quantiles but yields diminishing or negative effects at higher quantiles, indicating reduced marginal returns at mature performance stages. Sectoral differences further highlight stronger ESG payoffs in environmentally sensitive sectors. Collectively, the findings confirm that ESG is not a one‐size‐fits‐all strategy but a context‐specific‐driven performance lever. The results urge regulators to link ESG policies to stakeholders' responsiveness with measurable impact, promoting incentive‐based, dynamic frameworks that reward genuine sustainability over compliance.