The Role of Trust in ESG

This chapter explores the pivotal role of trust as the foundational mechanism that transforms Environmental, Social, and Governance (ESG) frameworks from symbolic commitments into credible systems of sustainable governance. It argues that trust – spanning organizational, relational, institutional, and digital dimensions – is both a prerequisite and an outcome of effective ESG implementation. The chapter develops a Multidimensional Trust–ESG Framework that conceptualizes trust as the mediator linking ESG inputs with outcomes such as innovation capability, financial resilience, reputation, and legitimacy. Empirical evidence from recent studies demonstrates that transparency, fairness, and ethical leadership strengthen trust and, in turn, enhance organizational performance. The discussion highlights emerging challenges, including algorithmic transparency and cross-institutional credibility, while proposing directions for future research.