Analysis reveals that higher ESG scores boost corporate financial performance in new energy firms, suggesting a link to enhanced risk management and investor trust.
When looking at the impact of ESG scores on energy companies financial performance, we found that a company's ESG performance significantly affects its financial performance. A high ESG score often reflects stronger risk management, lower capital cost, and higher investor trust. This positive relationship is likely to reinforce profitability and competitiveness of energy companies in the market in the long run, with increasingly severe environmental regulations and greater awareness of social responsibility. Through an in-depth analysis of the above impacts. In other words, we are in a better position to understand how companies may improve their financial stability along with sustainability potential by optimizing their ESG performance.
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Zhang et al. (2025) studied this question.
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