Do ESG activities have a positive impact on a firms performance and do investors recognize these effects and demand a lower rate of return on their investment? And how does regulation impact these behaviors?

A quantitative investigation into the impact of ESG activities and firm performance: a Stoxx Europe 600 context

Over the past few years, non-financial activities such as sustainable finance issues have become increasingly important for corporate managers and investors.

According to the European Commision sustainable finance refers to the process of taking environmental, social and governance considerations into account when making investment decisions in the financial sector, leading to more long-term investments in sustainable economic activities and projects.
On 11 December 2019, the Commission presented the European green deal, a growth strategy aiming to make Europe the first climate-neutral continent by 2050.
Basic Research Question:
The purpose of this paper is to concentrate on environmental, social and governance performance in total and divided in each component and evaluate their impact on financial performance .

Do ESG activities have a positive impact on a firms performance and do investors recognize these effects and demand a lower rate of return on their investment?
And how does regulation impact these behaviors?