Sustainability and Financial Performance in the Global Energy Sector: Evidence from ESG Scores and SDG Indicators

Mirela Cristea; Raluca Mihaela Drăcea; Ina Nimerenco; Constantin Ștefan Ponea

doi:10.5755/j01.ee.37.4.44433

Authors

Mirela Cristea Faculty of Economics and Business Administration, University of Craiova
Raluca Mihaela Drăcea Faculty of Agrifood and Environmental Economics, Bucharest University of Economic Studies
Ina Nimerenco Faculty of Agrifood and Environmental Economics, Bucharest University of Economic Studies
Constantin Ștefan Ponea Faculty of Legal, Economic and Administrative Sciences, Spiru Haret University

DOI:

https://doi.org/10.5755/j01.ee.37.4.44433

Keywords:

ESG, Sustainable Development Goals (SDGs), Corporate Performance, Corporate Governance, Energy Sector, Firm Size

Abstract

The paper’s objective is to examine the relationship between sustainability and financial performance for a sample of 575 listed energy companies, extracted from the LSEG database. Sustainability is captured both through ESG scores and SDGs reporting indicators. Financial performance is assessed in terms companies’ size (turnover) as well as profitability (proxied by return on common equity and operating income). To capture both direct relationships and indirect mechanisms between variables, the research method combines robust regressions, generalized structural equation modeling and Bayesian networks. The results show that the link between sustainability and performance is not uniform and suggest that the effects of sustainability on performance cannot be reduced to a single direct relationship. Firms' performance reflects the interaction between their structural characteristics, especially size, and the different components of sustainability. ESG scores appear closer to observable financial results, while SDG reporting reflects companies’ strategic orientation rather than immediate economic effects.

Author Biographies

Mirela Cristea, Faculty of Economics and Business Administration, University of Craiova

Mirela Cristea is a Full Professor at the University of Craiova, Faculty of Economics and Business Administration, PhD supervisor in Economics. Her main research directions and teaching activities are interdisciplinary research in economics, sustainable development, good governance in the economy, responsible development in banking, insurance, and private pensions, with over 100 papers in academic journals and volumes. She received two national awards from the Association of the Faculties on Economics from Romania, and the Emerald Literati Award for outstanding author contribution, in 2023. She is a reviewer and member of the scientific and organizational committees for numerous journals and conferences. https://orcid.org/0000-0002-6670-9798
Raluca Mihaela Drăcea, Faculty of Agrifood and Environmental Economics, Bucharest University of Economic Studies

Raluca Mihaela Drăcea is a Professor at the Bucharest University of Economic Studies, Faculty of Agri-Food and Environmental Economics, PhD supervisor, and member of the Council of the Doctoral School of Economics II. Her areas of interest include sustainable development, sustainable financing, and the interaction between fiscal policies and environmental performance. She has participated in national projects on carbon footprint assessment, sustainability reporting, and green transition in the agri-food and environmental sectors, analyzing the relationships between macroeconomic dynamics and sustainability indicators. ORCID: https://orcid.org/0000-0003-0927-7009
Ina Nimerenco, Faculty of Agrifood and Environmental Economics, Bucharest University of Economic Studies

Ina Nimerenco is an Assistant Lecturer within the Department of Agri-Food and Environmental Economics at the Bucharest University of Economic Studies. Her research lies at the intersection of sustainability, green economy, and higher education, focusing on the role of universities in advancing responsible development. She has conducted bibliometric and empirical studies on green skills, sustainable business practices, CO₂ emissions, regional energy transitions, and the integration of Sustainable Development Goals in higher education. Her work employs quantitative methods, including VAR modeling and regression analysis, alongside systematic literature reviews, contributing to debates in environmental economics and education policy. ORCID: https://orcid.org/0009-0008-8170-6502
Constantin Ștefan Ponea, Faculty of Legal, Economic and Administrative Sciences, Spiru Haret University

Constantin Ștefan Ponea is a Lecturer in the Department of Management within the Faculty of Legal, Economic and Administrative Sciences, Spiru Haret University. He holds a PhD in Management and is actively engaged in teaching and research in the field of organizational and public management, good governance, and sustainable development. He is the author and co-author of numerous scholarly articles in the economic field, published in prestigious journals and presented at recognized international conferences.