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This study aims to explore the emerging trend of business-wide Sustainability Third-Party Labels (STPLs), exemplified by entities like B-Corp. These labels are awarded to organizations committed to a distinctive approach to business, typically embracing the triple-bottom-line (TBL) framework, prioritizing not only financial performance but also social and environmental impact. The research investigates whether these labels enhance trust and influence perceptions of sustainability information quality among young consumers in Spain.

A factorial experiment has been conducted among a convenience sample of individuals belonging to the Z-generation (n = 126). The experiment involved randomly exposing the participants to different versions of an informational brochure from a fictional company in the agricultural sector (with and without label). Following the experiment, a focus group with 15 participants was conducted to assist in interpreting the results.

The results of this study suggest that the use of a nonsector specific label across various sectors with distinct sustainability challenges can lead to confusion among Z-generation consumers. Especially within sectors grappling with environmental concerns, such labels may be susceptible to being perceived as manifestations of greenwashing. Additionally, the study adds supporting evidence to the existing body of literature asserting gender differences in the interpretation of sustainability signals, including labels.

As far as this research is concerned, to the best of the authors’ knowledge, this is the first research that studies the perception of Z-generation members regarding business-wide STPLs. Focusing on studying, the attitudes toward sustainability of younger generations and how they respond to signals like business-wide STPLs are relevant, as they not only possess the longevity to drive substantial change but are also more susceptible to behavioral shifts, thereby holding significant potential in shaping a sustainable future. The study combines both qualitative and quantitative perspective and provides critical insights, relevant to stakeholders within business-wide STPL ecosystems, emphasizing the need for strategic coherence and transparency in label implementation.

Prior studies mostly tested the association between carbon emissions and firm value in certain contexts. This study aims to advance the existing literature by concentrating on three indicators of greening in corporations namely resource use, emissions and eco-innovation, and examining their value relevance in the stock market at the global level. Furthermore, we deepen the investigation by exploring the moderating role of eco-innovation and the CSR committee between greening in corporations and market value.

The data for the study were retrieved from the Thomson Reuters Eikon database for the years between 2002 and 2019 and contain 17,961 firm-year observations which are analyzed through fixed-effects regression.

The results reveal that while resource usage is viewed as value-relevant by the market, the emissions and eco-innovation are not. However, despite eco-innovation per se not being value-relevant, its interaction with resource usage and emissions is value-relevant. Furthermore, CSR committees undertake a very critical role in translating greening practices into market value.

While the results for emissions support the cost-concerned school, the findings for resource usage confirm the value creation school. Furthermore, the interaction effect of eco-innovation and CSR committee confirms the resource-based theory and stakeholder theory, respectively.

Investors regard eco-innovation-induced pro-environmental behaviors as value-relevant. These results propose firms replace eco-innovation at the focal point in developing environmental strategies and connecting other greening efforts to it. Moreover, CSR committees are critical to corporations in translating greening practices into firm value by developing and implementing disclosure and communication strategies.

The study’s originality stems from investigating the synergetic effect that eco-innovation and CSR committees generate in translating greening practices to greater market value at a global scale.