Higher expected returns for investors in the energy sector in Europe using an ESG strategy
The energy sector is transforming as new regulations are set in place to take into account the environmental and social factors as well as corporate governance initiatives which can be integrated within organisations. Companies are pushing towards having better environmental, social and governance (...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-10-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2022.1031827/full |
| _version_ | 1811234326945202176 |
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| author | Julia Wanday Samer Ajour El Zein |
| author_facet | Julia Wanday Samer Ajour El Zein |
| author_sort | Julia Wanday |
| collection | DOAJ |
| description | The energy sector is transforming as new regulations are set in place to take into account the environmental and social factors as well as corporate governance initiatives which can be integrated within organisations. Companies are pushing towards having better environmental, social and governance (ESG) scores as it impacts shareholders, investors, employees, customers amongst many others. The methodology used in this paper is quantitative and includes an analysis of the financial performance of publicly listed companies using return on equity, return on assets, return on sales, return on investment and also used the SARIMA (seasonal autoregressive integrated moving average) model to forecast revenues for the companies included in the research. The aim of this study is to investigate the impact of ESG activities within companies and how it affects investor returns. Considering regional and sectoral effects an observation of a positive relationship between ESG and investor returns is identified. |
| first_indexed | 2024-04-12T11:34:49Z |
| format | Article |
| id | doaj.art-d7a7e02295a5468088acc0e0354d9aab |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-12T11:34:49Z |
| publishDate | 2022-10-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-d7a7e02295a5468088acc0e0354d9aab2022-12-22T03:34:52ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-10-011010.3389/fenvs.2022.10318271031827Higher expected returns for investors in the energy sector in Europe using an ESG strategyJulia Wanday0Samer Ajour El Zein1Research Center, Geneva Business School, Genève, SwitzerlandEconomics and Finance Department, EAE Business School, Barcelona, SpainThe energy sector is transforming as new regulations are set in place to take into account the environmental and social factors as well as corporate governance initiatives which can be integrated within organisations. Companies are pushing towards having better environmental, social and governance (ESG) scores as it impacts shareholders, investors, employees, customers amongst many others. The methodology used in this paper is quantitative and includes an analysis of the financial performance of publicly listed companies using return on equity, return on assets, return on sales, return on investment and also used the SARIMA (seasonal autoregressive integrated moving average) model to forecast revenues for the companies included in the research. The aim of this study is to investigate the impact of ESG activities within companies and how it affects investor returns. Considering regional and sectoral effects an observation of a positive relationship between ESG and investor returns is identified.https://www.frontiersin.org/articles/10.3389/fenvs.2022.1031827/fullESGfinancial performanceinvestor returnsenergy sectorSRI |
| spellingShingle | Julia Wanday Samer Ajour El Zein Higher expected returns for investors in the energy sector in Europe using an ESG strategy Frontiers in Environmental Science ESG financial performance investor returns energy sector SRI |
| title | Higher expected returns for investors in the energy sector in Europe using an ESG strategy |
| title_full | Higher expected returns for investors in the energy sector in Europe using an ESG strategy |
| title_fullStr | Higher expected returns for investors in the energy sector in Europe using an ESG strategy |
| title_full_unstemmed | Higher expected returns for investors in the energy sector in Europe using an ESG strategy |
| title_short | Higher expected returns for investors in the energy sector in Europe using an ESG strategy |
| title_sort | higher expected returns for investors in the energy sector in europe using an esg strategy |
| topic | ESG financial performance investor returns energy sector SRI |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2022.1031827/full |
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