The relationship between sustainability practices and financial performance in the European energy sector

This study explores the relationship between sustainability practices and financial performance in the European energy sector using firm-level ESG data from Refinitiv for the period 2018 - 2024. The analysis focuses on a selected set of environmental, social, and governance indicators and the overall ESG score. Descriptive statistics and Pearson correlation analysis are employed to identify key associations between ESG factors and profitability measures such as return on assets (ROA). In addition, a multiple regression model is used to assess the extent to which sustainability performance influences financial outcomes. The findings provide empirical evidence on the role of ESG integration in enhancing transparency, competitiveness, and alignment with the European Union's sustainability objectives. The study contributes to a better understanding of how energy companies can balance economic performance with responsible environmental and social practices.