ESG sustainability and financial profitability in four major Chilean copper mining companies: firm-level correlational evidence and the conceptual ISVM model
DOI:
https://doi.org/10.26439/pjm2026.n004.9019Keywords:
sustainability investment, copper mining, ROE, ROA, ROSI, ESG, SASB, value creation, corporate governance, ChileAbstract
Objective: To empirically analyze the relationship between ESG maturity (environmental, social, and governance), reported under SASB standards for the EM-MM sector, and financial profitability, measured by ROE, ROA, and EBITDA Margin, in the four largest copper mining companies in Chile during 2021-2025. Methodology: A quantitative, non-experimental, longitudinal, and descriptive-correlational approach was adopted, based on audited financial statements prepared under IFRS and SASB sustainability reports. Pearson correlations were calculated between the annual ESG maturity score and profitability indicators, and a multiple regression model was estimated for ROE as a function of ESG maturity and copper prices. Robustness was assessed using Spearman and Kendall correlations and a leave-one-out sensitivity analysis. Results: Relevant positive relationships were identified for Escondida (r ≈ 0.92) and Codelco (r ≈ 0.78), whose ROE increased by 13.7 and 21.1 percentage points, respectively. Anglo American Sur showed weak positive correlations (r ≈ 0.28-0.45). Originality/Value: The study proposes the ISVM model (Sustainable Investment and Value Creation in Mining), supported by exploratory evidence. Practical Implications: The findings guide regulators and managers toward standardizing SASB reporting, incorporating ESG metrics into capital management, and using ROSI. Social Implications: The evidence highlights the relevance of the social license to operate and community management as mechanisms potentially associated with financial value creation.
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