This paper explores the impact of rising public concerns about ESG issues on firm performance. To quantify these concerns, we construct an ESG Concerns Index using Google search volume data. Our analysis reveals that as public ESG concerns rise, firms with higher ESG scores experience a significant increase in profitability, driven by improved profit margins. These effects are more pronounced for firms operating in industries with greater differentiation opportunities, highly competitive markets, and those with higher investments in R&D and Advertising
