The Impact of ESG Decoupling and the Role of Green Innovation on Reputational Risk: Evidence From the Global Consumer Industry

ABSTRACT This study investigates how ESG decoupling influences reputational risk and examines the moderating role of green innovation. Using 1482 firm‐year observations from globally listed consumer services companies (2015–2023), the findings reveal that while ESG decoupling may provide short‐term reputational relief, it ultimately undermines transparency and stakeholder trust. Green innovation emerges as a critical mechanism for restoring legitimacy and enhancing reputation. By focusing on the