USV - International Economic Conferences, CHALLENGES AND OPPORTUNITIES FOR A SUSTAINABLE DEVELOPMENT - THE 20TH EDITION, 2024

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THE IMPACT OF ENERGY EFFICIENCY ON CORPORATE PERFORMANCE OF LISTED COMPANIES IN EU
Ion Frecautan

Last modified: 2024-05-30

Abstract


The paper analyzes the impact of energy efficiency mechanisms and ini􀆟a􀆟ves on financialperformance of listed companies from EU. The research use predominantly industrial companies whichface two important specifics from the perspec􀆟ve of energy: first, such companies are important pollutersand second these companies have energy intensive business models. For this reason, data is extractedfrom Thomson Reuters Refini􀆟v Eikon where we combine corporate ESG, financial and capital marketsinforma􀆟on. Thus, the energy efficiency mechanisms are represented through corporate engagement andadherence to regulatory frameworks for energy efficiency, and corporate commitment to energy efficiencytargets. To address the research topic, we employed mul􀆟ple regression methods for data analysis andfound that energy efficiency mechanisms significantly impact the financial performance of EU listedindustrial companies. Furthermore, in the analysis we included the usage of renewable energy resourcesto show how companies can increase their compe􀆟􀆟veness through sustainability ini􀆟a􀆟ves andaddi􀆟onal to create added value for the investors. Our findings help to underline and sustain theimportance of the posi􀆟ve effects of the energy efficiency undertakings on the organisa􀆟onal performancefor the EU listed companies which in parallel brings a posi􀆟ve impact on the environment and increase thecorporate sustainability performance.

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