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Publication Detailed Description
The impact of Esg factors on financial performance in the European energy sector
2025 21st International Conference on the European Energy Market (EEM)
Year (definitive publication)
2025
Language
English
Country
United States of America
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Abstract
The European energy sector is crucial in promoting sustainable economic growth but faces increased pressure to adhere to environmental, social, and governance (ESG) standards. ESG adoption is no longer a matter of compliance only but a way of significantly influencing companies' financial performance and strategic positioning. Indeed, integrating ESG factors significantly impacts public perception and is increasingly recognized as a key determinant of financial performance. Therefore, this study investigates how ESG factors, individually and collectively, influence the financial performance of European energy companies and which specific ESG practices contribute most to financial resilience and profitability. Furthermore, it studies how varying regulatory frameworks and market conditions shape the relationship between ESG adoption and financial performance in compliance with Sustainable Development Goals (SDGs). The study concludes that adopting robust ESG practices enhances the financial resilience of European energy companies, demonstrating that sustainability efforts may not be aligned with profitability. Also, governance measures were revealed to have the most substantial effect on financial performance and leverage.
Acknowledgements
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Keywords
Energy sector,ESG factors,Europe,Financial performance
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
Funding Records
| Funding Reference | Funding Entity |
|---|---|
| UIDB/04058/2020 | Fundação para a Ciência e a Tecnologia |
Contributions to the Sustainable Development Goals of the United Nations
With the objective to increase the research activity directed towards the achievement of the United Nations 2030 Sustainable Development Goals, the possibility of associating scientific publications with the Sustainable Development Goals is now available in Ciência_Iscte. These are the Sustainable Development Goals identified by the author(s) for this publication. For more detailed information on the Sustainable Development Goals, click here.
