Financial performance of companies implementing the ESG Triptych

The relationship between sustainability and financial performance is discussed in many scientific studies. Most studies suggest a positive relationship between sustainability performance and financial performance. What remains unclear, however, is the direction of causality, which can be explained by two theories, the theory of resource availability and the theory of good management.

On the one hand, good management theory is closely linked to the view that a resource based view of a business and argues that corporate viability can have an impact on financial performance because it helps a company reduce costs, to increase its reputation and to address stakeholders in the social and environmental responsibility of the company. Thus, corporate sustainability leaders are managing well and achieve a competitive advantage which helps them outperform their competitors financially. The theory of good management defines the performance of sustainability as a subcategory of the performance of general management. Proponents of this case have been working to make the actual transcript of this statement available online. Therefore, corporate viability and overall viability are correlated.

On the other hand, good financial performance can affect corporate viability because it provides the financial resources needed to invest in corporate viability. In particular, accounting measurements based on financial performance that are independent of financial market influences, such as the return on assets, are able to predict corporate viability because its performance is company-specific. The reason is that companies with high financial performance and low risk can act more responsibly than their competitors with lower returns and higher risk. As a result, increased corporate viability returns after the accumulation of available resources.

Financial Analysis Methodology

Regarding the Greek business ecosystem, the adoption of the ESG triptych and consequently the development of corporate viability is rapidly taking place, with 29 large companies applying the ESG criteria to their investments. In order to find the usefulness of these criteria in Greece, a financial analysis of these 29 companies followed, having drawn data from their published financial statements and having structured the results based on their financial indicators and international norms.

Based on the financial analysis, the 29 companies that use the ESG triptych can be easily evaluated and ranked.

Which companies, that is, achieve satisfactory prices in almost all indicators, efficiency, liquidity, ability to borrow and repay, recycle and profit margin, ie exceed the international norms.

The goal of the Financial Engineering Laboratory of the Technical University of Crete is to develop in the near future an intelligent business rating system with ESG criteria and financially that will assist banks in their financing decisions (ESG Rating System).


While in other foreign countries, the ESG phenomenon is now established and considered a given, in our country it took a long time to appear, as many were afraid of this kind of investment moves.

However, the results of our analysis show that companies with more efficient resource management and higher environmental, social and intergovernmental performance, lead to better financial performance. Therefore, the example of these companies must be followed by others in the wider business environment of Greece and make an effort not only to increase the value of their shares, but also to improve their impact on society and the environment.

*Greek version of this article is available on Oikonomikos Taxydromos.

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