Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)

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ESG Performance Relation with Financial Performance

Authors
Zhiyang Lin1, *
1Guangdong University of Foreign Studies, Guangzhou Higher Education Mega Center, Panyu District, Guangzhou, China
*Corresponding author. Email: zhiyangkk.lin@outlook.com
Corresponding Author
Zhiyang Lin
Available Online 17 September 2025.
DOI
10.2991/978-94-6463-835-6_36How to use a DOI?
Keywords
ESG Performance; Financial Performance; Regression Analysis
Abstract

As businesses realize the potential influence on long-term financial sustainability and value creation, the incorporation of Environmental, Social, and Governance (ESG) elements into corporate strategy has grown in importance. The objective of this study is to examine the relationship between ESG performance and financial performance, with particular emphasis on the renewable energy sector. Using a mixed-methods approach, the research employs panel data analysis and qualitative case studies. The sample includes publicly traded renewable energy companies listed in the United States and Europe from 2015 to 2024, with data sourced from MSCI ESG ratings and financial statements. The findings reveal a significant positive correlation between ESG performance and financial performance, attributable to enhanced operational efficiency and effective stakeholder engagement. The study reaches the conclusion that ESG performance is a core determinant of long-term financial prosperity and sustainable value enhancement, further emphasizing the mediating function of agency costs and financing constraints. These findings imply that incorporating ESG practices into corporate strategy can lower risks and improve financial credibility. Future research could further explore the mechanisms and contexts influencing this relationship across different sectors and regions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
17 September 2025
ISBN
978-94-6463-835-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-835-6_36How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Zhiyang Lin
PY  - 2025
DA  - 2025/09/17
TI  - ESG Performance Relation with Financial Performance
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 335
EP  - 349
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_36
DO  - 10.2991/978-94-6463-835-6_36
ID  - Lin2025
ER  -