Environmental, Social, and Governance (ESG) Dynamics in the Energy Sector: Strategic Approaches for Sustainable Development
Mustafa Yucel and
Sevgi Yucel (sevgiyucel@ogr.kastamonu.edu.tr)
Additional contact information
Mustafa Yucel: Department of Business Administration, Kastamonu University, Kastamonu 37150, Türkiye
Sevgi Yucel: Department of Economics, Kastamonu University, Kastamonu 37150, Türkiye
Energies, 2024, vol. 17, issue 24, 1-19
Abstract:
ESG metrics have become increasingly important in evaluating corporate sustainability and meeting regulatory expectations. Thus, it is essential to explore these elements for a clearer understanding. This study examined the environmental (E), social (S), and governance (G) scores across various sub-sectors of the energy industry. Using systems thinking and creating shared value (CSV) approaches, the research investigated whether ESG performance varies significantly among the sub-sectors and how changes in one pillar might influence the others. Data from 576 companies in the Thomson Reuters EIKON database were analyzed using ANOVA, correlation, and multiple regression. The results revealed distinct differences in the ESG scores among sub-sectors, with environmental and social practices often reinforcing each other. However, governance showed a weaker influence, highlighting the need for further research on governance frameworks to clarify the underlying reasons and to integrate better with other ESG pillars. The research has specific implications for strategic management and provided recommendations for further studies.
Keywords: sustainability strategies; ESG performance; systems thinking; creating shared value (CSV); energy industry (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:
Downloads: (external link)
https://www.mdpi.com/1996-1073/17/24/6291/pdf (application/pdf)
https://www.mdpi.com/1996-1073/17/24/6291/ (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:17:y:2024:i:24:p:6291-:d:1543082
Access Statistics for this article
Energies is currently edited by Ms. Agatha Cao
More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager (indexing@mdpi.com).