The impact of ESG principles on the company's profit
DOI:
https://doi.org/10.14571/brajets.v16.n3.685-696Keywords:
ESG financial impact, ESG integration, sustainable development, corporate social responsibility, corporate sustainabilityAbstract
The primary aim of this study is to evaluate the efficacy of including ESG factors in strategies that support sustainable development. The study seeks to determine the links between ESG performance in the environment, society, and corporate governance and profitability. An essential element uncovered in the article is the investigation into the causality of this connection. The paper focuses on refining the assessment of the aforementioned link. The article examines the impact of ESG investments, considering the increasing worldwide usage of responsible investment practices, sustainability initiatives, and safe production methods. They not only establish the theoretical foundation for their study but also illustrate the conclusions with concrete data sourced from the reports of the examined company. Theoretical analysis of scientific methods involving analysis, synthesis, and generalization of existing literature are utilized. Additionally, quantitative methods were utilized, which encompassed statistical analysis of data derived from the final and annual reports of PJSC Tatneft. The study results provide invaluable insights indicating that adhering to ESG principles directly influences a company's revenue, particularly for enterprises engaged in profitable yet environmentally hazardous activities.References
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