Developing of ESG Score to Assess the Non-financial Performances in Romanian Companies

The development of an extra-financial analysis is indisputable in the current context of world economy. This issue is also argued by the appearance and development of extra-financial rating agencies which already asses some extra financial scores based on environmental, social and governance performances (ESG scores) that the companies have registered. These scores are complementary used with the financial score, increasing accuracy in performance and risk assessments. Our attempt consists in developing an environmental, social and governance (ESG) score in order to evaluate the non-financial performances recorded by the companies which activate within the Romanian space. Our sample consists of 65 companies listed on the Bucharest Stock Exchange (BSE) which reports a Comply and Explain Statement, as a document of adhering at the BSE Corporate Governance Code. The period of analysis is 2011-2012. In 2012 the overall results reflect a medium level of 73% of adopting the principles of best practices in corporate governance. Regarding the social and environmental performances, our results reflect that in the same year 2012 a majority share of 97% of sample companies report that they have adopted such activities. Compared to 2011, Romanian companies have made great progress in obtaining a high level of ESG performances