2. Topic for the literature review Accelerated by the adoption of the 17 sustainable development goals at UN members states in 2015, the increasing number of firms pay attention to corporate social responsibility (CSR) by investing in Environmental, Social and Governance (ESG) activities. Examples of ESG commitments include i) reduce greenhouse gas emissions (Environmental), ii) identify and prevent forced and child labour (Social) and iii) increase board diversity and board independence (Governance). Investors are able to identify firms that adopt better ESG practices through ESG ratings which are provided by established ESG raters such as Bloomberg. Given the prevalence of ESG practices, an important question that is examined in academic literature is whether ESG practices (or performance) affect firm value and cost of capital. The implication is whether the market values a firm's commitments to ESG issues.