THE INFLUENCE OF ESG CRITERIA ON THE PERFORMANCE OF ECONOMIC AND FINANCIAL INDICATORS: EVIDENCE AND IMPACTS

Abstract

This study sought to understand the relationship between ESG (Environmental, Social and Governance) criteria and the economic and financial performance of companies listed on B3 that are part of the Corporate Sustainability Index (ISE). The survey analyzed data from 630 companies, collected between 2008 and 2023, through the Economática and Refinitiv platforms. With a quantitative approach, panel regression models were applied to examine how ESG practices impact financial indicators such as ROA, ROE, and EBITDA. In general, the results show that there is no significant correlation between economic and financial performance and ESG criteria in aggregate, leading to the rejection of the initial hypothesis of the study. However, when evaluating the dimensions individually, it was identified that the environmental pillar exerts a positive influence on EBITDA, suggesting that practices aimed at the environment can bring financial benefits. On the other hand, the social and governance pillars did not have a relevant impact on the indicators analyzed, reinforcing the lack of consensus in the literature on the relationship between sustainability and financial performance. In view of this, it is concluded that the adoption of ESG practices, although important for the reputation and responsibility of companies, does not necessarily guarantee superior economic and financial performance.