FINANCIAL IMPACT OF ENVIRONMENTAL COSTS ON CORPORATE RESILIENCE FOR EUROPEAN ENERGY TECHNOLOGY COMPANIES

This research studies the relationship between environmental cost and corporate financial resilience on major energy and technology companies in Europe, including Iberdrola SA, Endesa SA, Schneider Electric SE, and Siemens AG. Research focuses on 5 years of data (2019-2023) to analyze data using methodology of S&P and Trucost. Profit margin is determined as a key indicator of corporate resilience. Regression analysis reveals a negative correlation between environmental impact ratios and profit margins, suggesting that investments in environmental sustainability can enhance profitability and operational efficiency. However, the moderate explanatory power of the model indicates that other factors, such as economic and market conditions, also influence outcomes. The findings of this research provide insight for policymakers and corporates on aligning Environmental, Social and Governance practices with financial performance goals.
XIII. ÉVFOLYAM 2025. SPECIAL ISSUES 1. 24-30
DOI: 10.24387/CI.SI.2025.1.4