In this study, we examine whether a negative relationship between a high degree of ESG(and/or factors) and EM (i.e., AEM, REM) with regard to ① direct effect, ② moderating effect, and ③ combined effect. For this, we base the sample of our study consisted of 6,250 firm-year observations using the evaluation information of KCGS those listed on the Korea Exchange from 2011 to 2020. The empirical result of our study is as follow. First, we find that ESG ratings have a negative influence on REM but not on AEM in respect of direct effect. Second, we do not find that high-grade ESG negatively moderates the positive relation between loss avoidance as well as earnings decrease avoidance (i.e., a strong incentive for managers to report earnings) and EM in respect of moderating effect. Third, we find that firms with higher level of foreign ownership negatively moderate the relation between ESG and EM in respect of combined effect of the interactions between ESG and external corporate governance. In sum, Our findings provide a contribution on the relationship between sustainability engagement and EM practices, extending the prior research focused on moderating effect and combined effect. Thus, we fill the prior research gap.