Is ESG Relevant to Electricity Companies during Pandemics? A Case Study on European Firms during COVID-19

Boldeanu, Florin Teodor; Clemente-Almendros, José Antonio; Tache, Ileana; Seguí-Amórtegui, Luis

doi:10.3390/su14020852

Cited by 14 publications

(7 citation statements)

References 87 publications

(143 reference statements)

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“…Ref. [25] show that the COVID-19 pandemic had a negative impact on the electricity sector and that each ESG pillar scores affected those companies differently. Engelhardt et al [18] find that high-ESG-rated firms have higher abnormal returns and lower stock volatility during the COVID-19 pandemic, while Bansal et al [26] conclude that stocks with high ESG ratings outperform low-rated stocks in favorable economic periods, such as when there is high aggregate consumption and stock market value.…”

Section: Literature Reviewmentioning

confidence: 99%

The ESG Patterns of Emerging-Market Companies: Are There Differences in Their Sustainable Behavior after COVID-19?

Gonzaga,

Klotzle,

Brugni

et al. 2024

Sustainability

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We aim to map the ESG patterns of emerging-market companies from 2018 to 2021 in order to determine whether the COVID-19 pandemic exerted any influence on sustainable corporate behavior. Thus, the ESG performances were assessed by employing the Kohonen Self-Organizing Map (also known as the Kohonen neural network) for clustering purposes at three levels: (i) ESG overall, including country and sectoral perspectives; (ii) ESG thematic; and (iii) ESG four-folded (stakeholder, perspective, management, and focus strategic views). Our results show that emerging-market companies focus their ESG efforts on social and governance issues rather than on environmental. However, environmental and social behavior differ more acutely than governance behavior across clusters. The analyses of country-level ESG performance and that of eleven market-based economic sectors corroborate the geographic and sector dependence of ESG performance. The thematic-level analysis indicates that operational activities and community issues received more attention, which suggests that emerging-market companies address distinct ESG topics according to their particularities and competitiveness. Furthermore, our empirical findings provide evidence that the ESG behavior of companies has changed over the course of the COVID-19 pandemic. Thus, our findings are relevant to policy makers involved in regulating ESG disclosure practices, investors focused on enhancing their sustainable investment strategies, and firms engaged in improving their ESG involvement.

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Section: Literature Reviewmentioning

confidence: 99%

The ESG Patterns of Emerging-Market Companies: Are There Differences in Their Sustainable Behavior after COVID-19?

Gonzaga,

Klotzle,

Brugni

et al. 2024

Sustainability

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“…The findings show that ESG pillar ratings have a sector-specific impact on power firms. Environmental ESG ratings had a beneficial impact on returns for renewable power firms, whereas governance ESG scores had a negative impact [8]. Demers et al undertook a series of analyses including regression on the buy-and-hold abnormal returns to explore how ESG influenced the COVID period returns of the firm.…”

Section: Related Researchmentioning

confidence: 99%

Firm Value and ESG Performance During the Covid-19 Pandemic

Zhang¹

2022

Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)

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Since the outbreak of the new crown epidemic, ESG investment has received unprecedented attention among investors and scholars. A growing number of academics show interest in the link between ESG performance and corporate value, while mostly focusing on developed markets. This article aims to explore the relationship between ESG performance and corporate value in emerging markets, especially the impact of the crisis on this relationship caused by the COVID-19 pandemic. The article performs several multiple linear regressions on the firm value of Chinese manufacturing companies and concludes that ESG performance plays a positive role in the creation of firm value. Moreover, the results show that this positive impact has been blunted during the pandemic, which is partly because the increased importance of cash flow to business operations makes ESG activities costly investments for the manufacturing companies.

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“…For instance, Broadstock et al (2021) find that firms in China are only affected by the environment and governance pillars during the pandemic. In addition, Boldeanu et al (2022) document that the returns of renewable electricity firms in Europe are positively affected by the environmental and social pillars during the pandemic. They argue that each pillar is differently affected based on its respective sector and surrounding context (El Khoury et al, 2022).…”

Section: Esg Performance and Stock Returns During The Covid-19 Pandemicmentioning

confidence: 99%

“…(2021) find that firms in China are only affected by the environment and governance pillars during the pandemic. In addition, Boldeanu et al . (2022) document that the returns of renewable electricity firms in Europe are positively affected by the environmental and social pillars during the pandemic.…”

Section: The Role Of Esg During the Covid-19 Pandemicmentioning

confidence: 99%

Corporate immunity during crises and pandemics: does ESG matter? Literature review and future prospects

Mounir

Ali

2022

MSAR

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PurposeThis research aims at synthesizing the existing body of literature on the role of environmental, social and governance (ESG) during the Covid-19 global pandemic, identifying the research agenda and perspectives on the role of ESG during times of economic turbulences and pointing to gaps and future research directions in this area.Design/methodology/approachA literature review of academic articles that focus on the role of ESG investments during the Covid-19 pandemic is conducted. These studies are identified based on searching/containing the keywords “ESG”, “Corporate Social Responsibility (CSR)”, “Sustainability” and “Sustainable Finance” in combination with one or more of the following terms: “Covid-19”, “Pandemic” “and Crisis”. Then, the authors explore the key directions/themes in these papers, and highlight the main gaps and areas that are evolving as future research opportunities.FindingsThe empirical findings provide overall compelling evidence in support of the role of ESG during times of crisis, especially when it comes to stock risk and volatility. For example, several studies report that ESG stocks are associated with superior stock performance (higher stock returns and firm value) during the pandemic, while other studies report that ESG act as a risk protection tool during times of crisis, as they document that ESG stocks are associated with lower volatility and lower downside risk during the Covid-19 crisis.Originality/valueTo the best of the authors knowledge, no review of the literature on the role that ESG plays during crises and pandemics has been conducted before. Thus, it fulfills this research gap in the literature.

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Is ESG Relevant to Electricity Companies during Pandemics? A Case Study on European Firms during COVID-19

Cited by 14 publications

References 87 publications

The ESG Patterns of Emerging-Market Companies: Are There Differences in Their Sustainable Behavior after COVID-19?

The ESG Patterns of Emerging-Market Companies: Are There Differences in Their Sustainable Behavior after COVID-19?

Firm Value and ESG Performance During the Covid-19 Pandemic

Corporate immunity during crises and pandemics: does ESG matter? Literature review and future prospects

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