Português
The impact of ESGs factors on financial performance in the European Energy Sector
Event Title
EEM 2025 – 21th International Conference on European Energy Market
Year (definitive publication)
2025
Language
English
Country
Portugal
More Information
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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
ESG factors,financial performance,energy sector,Europe
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
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.
