The influence of ESG factors on company performance

Abstract

The acronym ESG refers to environmental, social and governance (ESG) factors of cooperative governance, which have gained significant importance in recent years as investors, stakeholders and businesses increasingly recognize their importance. ESG factors can affect a company's performance through financial outcomes, risk management, reputation and long-term sustainability, etc. Companies that perform well on ESG criteria can be more attractive to investors and stakeholders concerned about long-term sustainability and responsible business practices. Moreover, many stock exchanges and regulatory bodies around the world encourage or require companies to disclose their ESG performance to promote transparency and accountability. The research in this paper is focused on the analysis of the impact of ESG factors of sustainable development on the company's profitability. The research focuses on the company DELHAIZE Serbia DOO Belgrade in the period 2020-2022. years. For data collection, reports on the company's sustainable development and available data on APR from the balance sheet and income statement were used. The analysis used the method of multiple linear regression. The empirical results of this research showed that business operations aligned with ESG factors of sustainable development has a positive effect on the company's profitability indicators.