Towards Green Transition: Sustainable Energy Future and Its Effects on Companies’ Financial Strategies

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Authors: Alexandra-Mădălina Țăran, Grațiela-Georgiana Noja, Alina Ionaşcu, Mihaela Diaconu, Oana-Ramona G. Lobonţ
Cited by: 2
References: 90

Abstract

Socio-economic resilience and sustainable development have become central themes in contemporary public debate, with the transition to sustainable, low-carbon energy systems emerging as a strategic priority. Within this context, our research specifically examines how CSR engagement, renewable energy deployment, and sustainable finance jointly influence firms’ exposure to climate-related financial risks, addressing a gap in the literature regarding corporate-level resilience. The empirical analysis employs a structured two-fold methodological framework comprising robust regression with Huber and biweight iterations, and quantile-on-quantile (Q–Q) regression. The dataset includes 300 European energy companies for 2024, extracted from the LSEG Data & Analytics platform. Our findings reveal that companies in the European energy sector must accelerate their transition to low-carbon operating models. Specifically, firms with stronger sustainability commitments exhibit reduced exposure to climate-induced financial instability and improved long-term performance indicators. These findings underscore the moderating role of CSR and renewable energy investments in enhancing corporate resilience. Sustainability-oriented firms are better positioned to absorb, mitigate, and adapt to climate-related shocks, supporting both environmental objectives and financial stability. Policy recommendations should focus on balancing ESG objectives with financial performance requirements, ensuring that energy companies receive adequate support for the green transition. Such alignment is essential to strengthen corporate resilience and improve the effectiveness of sustainable energy policies amid escalating climate challenges.

Fields of Study & Subjects

Corporate Social Responsibility Reporting Supply Chain Resilience and Risk Management Sustainable Finance and Green Bonds

Publication details

Journal / source
Energies
Publisher
MDPI AG
Volume
19
Issue
1
Pages
277–277
Publication date
5 January 2026
Language
EN